As fear grows about future fallout from the South Florida condo crash, Washington Mutual Bank is now refusing to finance condominium units in a combined 72 towers in Miami-Dade, Broward, and Palm Beach counties, according to a Miami Daily Business Review article.
Washington Mutual won’t even consider providing a residential mortgage in 40 towers in Miami-Dade, 25 condos in Palm Beach, and 12 projects in Broward, according to the article.
Washington Mutual is not the only institution refusing to finance condos in South Florida. BankUnited, the largest Florida-based savings association, is also refusing to lend in several South Florida condominium towers, according to the article.
“In most cases properties are to be avoided for ‘high investor concentration and declining market value,’ but some are included because of pending litigation, delinquency issues with the homeowner’s association, high foreclosure rates or how many loans a bank already has on units in the building,” according to the article.
Cash buyers should be keen to figure out which condominiums are not able to obtain financing as the likelihood of negotiating a deep discount rises significantly. Sellers in these condos have few alternatives other than to dump to buyers with all cash.
For this reason, Condo Vultures® LLC uses court records to track which condominium projects have the highest foreclosure rates in South Florida.
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email. Be sure to check out Peter’s blog at CondoDump.com.
Copyright © 2008, Condo Vultures® LLC
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