One of my listings is actually 15 listings in a waterfront condominium building.  Sales have picked up since the beginning of 2009 but getting them to closing has been more of a challenge.

It has nothing to do with the buyers deciding to pick up a walk away from a deal, it is the lenders continuing to move the bar.  With the new underwriting requirements and the fear that new construction, especially condominiums are toxic the hoops are unbelievable.  Our first two deals of 2009 closed without a hic-cup but the next three have been caught in an endless loop.

Condo questionnaires, condo documents, condo budgets, legal review of title work, litigation review, occupancy permits and the list goes on and on.  Even after all of the requirements have been met the lenders may still turn the buyer down.  Today one of the lenders backed out of their deal, after keeping the buyer on the edge of their seat for almost 3 weeks.  The only saving grace is that we have now located a lender who wants to work with us AND is willing to close our "open" deals in record time. 

As we read through all of today's options to bail out homeowners who are in over their heads the effect on current buyers is evident.  A good credit score and 20% down won't necessarily buy you that new construction condo that you want.  If the lender doesn't think they can sell it and the MI companies won't touch it the buyer can't buy it.

Another day in the real estate trenches.