Getting financing to buy a condo can be tough these days.
Lenders are examining everything about
condo complexes – including the financial situations of all its owners
– before they agree to lend money to people who want to buy in or
current owners who want to refinance.
Some condos have been hit hard by the
foreclosure crisis and that has affected condo association budgets and
put downward pressure on the value of individual units.
There's a recognition that a lot of condos
are in weak hands, said Mike Larson, an analyst at Weiss Research in
Florida. There's a lingering fear that there will be more fallout and
that's why more conditions are being attached to condo loans.
The market is likely to stabilize at the
end of this year or in 2010, say some analysts, including William Rich,
vice president at the research firm Delta Associates. But even the 2010
date isn't certain, according to Rich, because There's always a lag
time between when conditions change and when the banks respond.”
Source: The Washington Post, Dina Elboghdady (04/28/2009)