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Frustration over condo rules!

By
Real Estate Broker/Owner with Pogo Realty, LLC BROK.0005690708

Sometimes a blog is a great tool to let out a rant. I rarely use it for that but that's going to be the case here. I have a very well qualified buyer who can't seem to buy a condo for 10% down becasue of all the new rules that seem to get implemented monthly both at a national and local level. It appears that mortgage insurance companies are the latest entity to require almost 80% owner occupancy to close a deal. I can't believe I just had to cancel a deal over mortgage insurance. This developer seems to have done everything right and will now be the unfortunate victim of the overreaction we've seen to the condo market over the past year or so. Fortunately my buyer has other choices...this poor seller and the agent attachd to him must wait for a 20% down or cash buyer. With these particular units aimed at first time buyers, that's going to be a long wait. It's another example of cutting off our nose to spite our face. Grrrr!

I'm all for sensible overhaul of lending rules, but this is getting ridiculous.

Posted by

Troy Jowers, New Orleans Realtor
Proudly brokered by Crescent City Living, LLC
Licensed in Louisiana

Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Yep, been dealing with that here in CA too. Add some of the FHA rules too, and it's killing the condo market.  We have a couple of complexes in litigation and the prices on those has really plummeted, causing even more casualties. 

Just got one through this week and it was the MI company that was putting the skids on.  Thank goodness my buyer was able to bring in additional cash from an investment account.  We close on the 23rd!

Dec 17, 2009 01:40 AM
Troy Jowers
Pogo Realty, LLC - New Orleans, LA
New Orleans Realtor

Congrats on the closing, Karen. I'm so glad you were able to get through this. So frustrating!

Dec 17, 2009 01:48 AM
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker

I've got a great little condo listed Uptown if your buyer is still looking, Troy :)  No issues with the occupancy rate, either.

Dec 17, 2009 06:19 AM
Troy Jowers
Pogo Realty, LLC - New Orleans, LA
New Orleans Realtor

What's the address or ML, Lisa??

Dec 18, 2009 12:44 AM
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker

1107 Austerlitz - ML #806060.  It's adorable, well kept and the condo fees are under $200/month.  2 blocks off Magazine, close to Touro.

Dec 18, 2009 01:11 AM