Condominiums in Florida have been the hardest hit segment of the local real estate market. During the boom years, the greatest amount of investor speculation took place in the condo market. New projects were planned and pre-sold before the real estate bubble ocurred. By the time these projects were completed, the market was in a tail spin and many investors fled from their deposits and never closed. Another large segment of buyers that did close became financially challenged by the Economic Crisis and lost their condos to foreclosure.
These events ignited a downward spiral in the condominium market as Condo Associations became financially crippled and unable to meet their obligations due to so many owners unable or unwilling to pay their HOA fees. As the Economic Crisis deepened, the negative effect spread to even older more established condo projects. Prices of Florida condos dropped more than the rest of the market and financing for many projects became unavailable. This left the condo market in shambles, as most condos could only be purchased by cash buyers.
In response to the Florida condo financing crisis, Fannie Mae sent a "Special Task Force" to Florida to investigate helping the market by identifying projects that didn't meet all of Fannie Mae's condo approval criteria, but were still financially stable projects. The "Special Task Force" has been working dilengently throughout the State to identify and approve troubled projects that are still viable and giving them a "Special Designation" as an approved Fannie Mae project that is eligible for Conventional financing.
This effort is ongoing and new projects are being added to the list every month. Condominium sales in Florida have been on the upswing in 2010, as prices have begun stabilizing and financing has become more available. Check out the projects in your area that have received Fannie Mae's "Special Designation" by clicking on the enclosed link. You might just find a new niche to assist buyers and sellers in your local Florida market. https://www.efanniemae.com/syndicated/documents/dps/condopud/FL.pdf
Harvey Collier - First Trust Mortgage - Florida Condominium Financing Expert
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