My last three condo sales in late June and July 2009 were all challenging but all closed successfully.   The condos were all good units, actually great buys, and the buyer’s were all qualified.  The condo projects themselves were all strong, well funded, and very well established.  The trouble came from some external factors to our market, namely Fannie Mae and Freddie Mac.   Their reponse to record losses and bad loans and management choices would appear to be to make it almost impossible to get a loan.  Not exactly the best way to get your company out of receivership, is it?  Of course, they are also raising fees so they can make up for the loss of volume.    

Fannie Mae used to guarantee mortgages where 51% of the units in a building had been sold.   In their infinite wisdom they have now decided they would raise the level to 70%.  In other words, until 71% are sold out, they won’t make a loan.   How as agents are we supposed to sell 71% of them if we can’t get a decent loan?    Fannie will no longer back loans for sales in buildings where 15% of current owners are delinquent on home owners association fees.  More rules, more regs, more hurdles to getting these markets back to some seblance of normal.  

The good news is that this is the time for a qualified buyer to swoop into this market and take full advantage of a once in a lifetime buyer’s market!  Lock in that fixed rate loan for five and a half percent and get the great buy you missed 7 to 8 years ago. 

Don’t wait, get pre qualified (oe better yet bring cash) and contact a well qualifed agent that has actually sold units with these new rules and guidelines in place.

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