Today I got a call from an agent whose buyer is purchasing one of my short sale condos in Destin Florida. The buyer has excellent credit, a pension plan and is a retired Air Force officer. He is buying a vacation condominium that he loves on the Emerald Coast, and putting 10% down. Well, guess what? He just lost his financing. 10% condo loans are going away. Here are two disturbing bulletins I received from Florida lenders today
Countrywide: "Purchasing a condo with 10% is almost gone. We can't get mortgage insurance on them and now if the condo has over 15% in HOA dues delinquent, you will have a hard time financing the condo. New Fannie Mae guidelines just came out."
Wells Fargo: "On February 1 Fannie Mae and Freddie Mac will be pulling out of the resort condominium lending market. Long term fixed rate mortgages, such as 30-year fixed, will not be available"
What does this mean? It means that prices are going down further for Destin beach condos. Why? Currently, there are about 2085 condos for sale in the market. The median sale price has dropped from $425,000 to $222,000 in the past year. Less than 2% of the inventory sells per month. If financing is harder to obtain, then there will be fewer buyers. If downpayments must go up, then there will be fewer buyers. If condominiums must have less than 15% homeowner association dues delinquent in order to be Fannie Mae-financed, there will be fewer condos sold. Many of the short sale condominiums I have sold had delinquent hoa dues. The dues are paid at closing, and the new buyer keeps up with the payments. What is the logic behind disallowing those sales, when the sales themselves solve the dues problem? If condo projects with lagging dues cannot be sold, then the dues will never be paid, and entire projects could head into foreclosure. The Fannie Mae solution- to be more "prudent" in lending standards- will only steepen the decline of condo prices in Florida and hamper regional economic recovery.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Short Sale Pre Foreclosure Help.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com
Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for 20 years. She has won numerous awards, including the coveted ADDY for advertising design. She is ranked in the top ½ percent of all Realtors on the Emerald Coast of Florida for resale listings sold and was featured in Kiplinger Personal Finance Magazine as a short sale specialist.
All Rights Reserved. "Destin Florida Condos: New Lending Restrictions Will Drive Down Prices" Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.Copyright © 2009 by Wendy Rulnick.
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.
