The downward pressure on the sales prices of Cape Condos continues as the challenges of getting financing continue.
The very same condo that I mentioned in May had a new buyer and a new lender and fell apart again at the last minute. This time it was about the buyer's income. Needless to say, the bank (in this case Citizens Bank) had preapproved the buyer, received all the information requested in a timely manner, and gave no indication of a problem until the day of the final commitment when they issued a "declination letter."
Another condo in a very well managed, well funded complex that has never had a special assessment, is under agreement with a strong buyer. The buyer is putting 20% down. Yesterday, the date of the final commitment, the lender (Provident) could not meet the original commitment date because their underwriters are backed up. The commitment is now due next week. Stay tuned.
Needless to say, this continues the downward pressure on condo prices because buyers are reluctant to get involved.
On the bright side, however, I do have a closing today on a very nice condo. Bank of America is providing the financing for this one.
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