Obtaining Mortgages Becoming More Difficult in Resort Areas
Article written by John A. Facey, III
Posted on Jan 18, 2012
Many of our clients purchase and sell condominiums in and around Vermont's ski areas. One of the troublesome issues that has surfaced recently is the increasing difficulty obtaining mortgages on condominiums, especially condominiums located in resort areas. The reasons for this are varied and seem to stem from the mortgage debacle of 2007-2008. There is a concern by lenders that they not get into a situation where they have too many mortgages on real estate in areas where real estate is not selling (witness, South Florida and Las Vegas). Recently, we have seen lenders who previously were actively courting mortgages from condominium purchases in resort areas completely pull out of those areas, putting sellers and buyers in a difficult position unless a buyer happens to have cash. Condominium projects with commercial space or with formalized rental operations have been especially vulnerable to these situations. It is important for both buyers and sellers to be aware of the mortgage options in their areas and, specifically, for condominium projects involved. Contact Jack Facey for further details on this important issue for real estate owners and potential owners.