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What is being done to fix the problem for financing resort area condo?

I have a condo in a resort area in California for sale.  On the first day of listing it I received a full-price offer, and since then have receive a 2nd full-price offers.  However, neither offer has gone to contract because they can not find financing due to current Fanny Mae, Freddy Mac, and FHA guidelines.  Like many resort community condos in the US, the complex has some timeshares and some units rented so it does not meet the 51% occupancy rule.  Even though the complex is well maintained and the price is right for sale (less than 50% of the price 3 years ago), it seems nothing in the complex will be able to sell for anything other than cash offers.  What can we do to fix this problem?
  • February 06 2011 - Lake Arrowhead
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Answers (11)

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You are probably in Willow Creek Condos, North Bay or Cool Creek?  It is your HOA that is not approved.  I had a client buy in Willow Creek and he went through his Credit Union and received a portfollio loan and closed the deal.  This was in November of 2010.  There are some lenders out there that have the ability to do it. 
  • February 07 2011
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Cita there are portfolio lenders that will lend on condos with over 51% investor owned. But, not on an investment purchase. The condo needs to be the new buyers primary residence. Also, no condotels or time-share activities are allowed in the project. .... Happy funding, Rudi 
  • February 12 2011
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I heard from the last of any possible lenders today.  There in NO Money for condos in complexes with less than 51% occupancy.  Those that used to do portfolio loans for these homes are either out of business or no longer do them.  I CAN'T BELIEVE THIS ISN'T IN THE NEWS!

The buyer with 25% down and great credit got his deposit back. 

If someone has some real leads for lending, contacts of people who have been able to get financing under the new guidlines, political contacts who will really help, or knows a resort community who has successfully fought this please let us know. 
  • February 11 2011
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I just went thru this with a client also in Nov. Her loan officer at a national company suggested she do a FHA loan on a condo. The regs are extremely hard as previously mentioned now with government funding and the only way to purchase a condo is either conventional loans or cash. Not to worry, there are good lenders out there ready to work for qualified buyers and mortgage companies are loosing up a bit too.
  • February 07 2011
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I have a listing at the Arrowhead Lake Estates AKA North Bay Condos, my sellers are in a position to carry the full note however I am composing a list of lenders that loan on condos just to have available for my buyers. so far only a couple and the guildlines are strict and rates are painful. I'll keep you posted  

  • February 07 2011
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Have any other units in the complex transacted in the last 6-12 months?

If so, have your agent provide you all of those addresses, and then any loan originator or title company should be able to check public record to find out who provided the financing for those transactions.   Sometimes this can be a good way to get a lead on a possible option for new financing.

  • February 07 2011
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Yes, Kim you are correct.  I have been told by my agent there is absolutely no money out there to lend on these condos.  I will attend my homeowners' annual meeting next Saturday.  What can they do to get approved, considering the make-up of the complex?  I believe they have the required funds in reserve, but they aren't willing to force a sale of the timeshares or force owners not to rent their units.  If you have any more ideas please let me know.
Thank you!
  • February 07 2011
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More than 51% occupancy, as long as it will be owner-occupied, there are portfolio lenders than will lend on this type of property. Your main problem is the Time-share aspect which is probably one of the reasons many folks bought into this complex. The ease of renting it out when they wouldn't be there.

Even when there were ton's of niche portfolio lenders, finding one that would lend on time-shares or condo-tels was difficult. The only way I know to fix this problem would be to to have the homeowners vote to change the by-laws of the association.

Happy funding, Rudi
  • February 06 2011
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Every portfolio lender I can find went under in the last year.
  • February 06 2011
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Just read your full inquiry. Try to find a lender who will portfolio the loan. They may charge a little higher rate but they should provide the loan if the bbuyer meets their qualification requirements.
  • February 06 2011
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We ar enot having a big problem anymore in VT with financing of resort ccondos, unless the HOA capitalizes from on-site rentals. Then we need to find lenders who will portfolio loans.

  • February 06 2011
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