There are a lot of condos in Florida, especially in Miami that are unable to get financing. With new guidelines that were implemented earlier this year through Fannie Mae, it requires that the association has no more than 15% of the condo units in default past 30 days. Many of these condos are in default and no one will finance them! How can anyone get lending? I currently have a short sale listing in a community that most units are in foreclosure or short sales. I had an offer and the buyer was unable to get funding due to the high default rate of the complex. When I contacted the association, they verified the numbers which were 30-35% in default past 30 days. Everytime an agent contacts me for showing instructions I always emphasize the default rate, many are not aware of the guidelines so I explain them.
This past week there was an article in the Miami Herald in regards to condo guidelines. Everyone that I have come in contact with reference this article but the new easier guidelines mentioned are only for FHA financing, allowing more condos to be FHA approved. It has nothing to do with association defaults which is a major issue. The only way to purchase units in areas with high default rates is by cash. It's crucial that the real estate agent is aware of the association situation when assisting a buyer or seller. Before placing an offer make sure you get the current information, if not it's just a waste of time....
No comments:
Post a Comment