In January the loan programs for condos tightened standards again.  If you are looking to purchase a condominium in Florida as a secondary residence, many programs have changed.  If that wasn't enough, there are entire condominium buildings that banks are refusing to write loans for.

There are no more loan programs with 10 percent down.  The 30 year fixed rate mortgage programs have also disappeared.  The new loan programs require a fully documented loan with 25 percent down.  These loans are only offered as 3 and 5 year Adjustable Rate Mortgages.  These are the programs that most banks use to give buyers loans on new purchases.

Three Condominiums in Panama City Beach now have financing problems.  Emerald Beach, Shores of Panama, and Tidewater are all on a list of condominiums that these programs will not finance.  Emerald Beach is classified as a Condotel because of Wyndham's purchase of the entire tower III.  Tidewater was classified for its beach not being big enough for the number of units in the building (I didn't understand that one either).  Shores of Panama was classified due to its bankruptcy (This should change as they emerge from bankruptcy).

Comment (2) Read More...

Silverton Bank was the only bidder that showed up to the Shores of Panama Auction on March 5th.  Silverton submitted the highest and best offer for the property in the total amount of $68.7 million.  The following day the Bankruptcy Court for the Northern District of Florida approved the sale.  Now Silverton Bank holds ownership to the outstanding units in Shores of Panama phase II free and clear of all liens, claims, interests and encumbrances.  They are one step closer to moving Shores of Panama phase II forward and out of Bankruptcy. 
Many banks are not offering financing for Shores of Panama phase I or II because of the bankruptcy.  This could effect the individual owners of phase I who are currently trying to sell there condominiums.  This should change once phase II emerges from bankruptcy.

Comment (2)