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Foreclosure Listings with Florida Condos Addressed by Fannie

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By : John Cutts    99 or more times read
Foreclosure listings with condos in Florida are being addressed by Fannie Mae, which has recognized the need to help reduce the high inventory of unsold condominium properties in the state and to help prevent further increase in foreclosure filings in the condo sector.

According to real estate consulting firm Condo Vultures, more than 97,000 condo units were foreclosed in 2009, an increase of 29 percent from 2008 and largely a result of condo overbuilding throughout the state.

To help solve these condo market problems in Florida, Fannie Mae has assigned one team to reassess unapproved condo buildings throughout the state and determine which buildings can be given special approval despite their failure to pass Fannie Mae requirements on financial stability, occupancy rates and other eligibility guidelines.

Most of these unapproved condo buildings are being run by homeowners and not by developers. If the buildings pass the review, they can be sold to buyers using Fannie Mae-backed mortgage loans.

To speed up the process of coordinating with lenders, condo projects that would pass the review will be added to the for-sale lists on Buyers of these units will be provided with Fannie Mae financing.

Karen Pallotta of Fannie Mae stated that the special approval scheme for Florida was aimed at reducing the number of condo units entering foreclosure listings, at cutting down statewide condo inventory and providing liquidity to the market. She expressed recognition of the extraordinary struggles of Florida in its condo sector.

Amy Bonitatibus, spokeswoman for Fannie Mae, added that the review scheme has already been crafted by Fannie Mae so that the assessment team can properly examine whether certain condo buildings should be put back into the list of Fannie Mae.

Broker Moe Veissi, first vice president of the National Association of Realtors, lauded Fannie Mae for its effort of helping the condo market.

In the report released by Condo Vultures, among counties in Florida hardest hit by condo overbuilding and foreclosures were Broward, Palm Beach and Miami-Dade counties. The coastlines of these counties are dotted with high-rise condo buildings with majority of their units unsold and vacant.

Condo Vultures also noted the Fannie Mae special approval scheme, but it said that it will not significantly move condo properties as many lenders still refuse to provide loans despite prior approval from Fannie Mae.

Nevertheless, Condo Vultures said that federal loan modifications achieved some level of success in South Florida, slowing down the pace of growth of foreclosure listings in the region.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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