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bank risk

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Guest	Posted: Wed Mar 24, 2010 9:26 am    Post subject: bank risk Like 0 Dislike 0 I am currently looking at a condo in NYC that is new construction and currently has less than 50% occupancy. My bank will not provide a mortgage even if I put 30% down. What risks does the bank have exposure to? Should I not even consider this building?
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Wed Mar 24, 2010 4:49 pm    Post subject: Condo Like 0 Dislike 0 The condo risk is that not enough units are sold for the unit owners to take control and not enough owners to pay the monthly condo maintenance fee to maintin the property and the common areas. Also, since not all sold yet, no idea if when the unit owners take control, they do not sue the builder/seller for some poor workmanship. I can "make up" a list of the lenders concerns. The point is that a new condo that is not sold is a risk not only to the lender but to yourself also. Nothing bad may ever happen, but, at this point no one knows. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278

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