See Video: www.realtytimes.com Click on Investor Report: Small Scale Investing Challenge.

Matt: With no one to buy or guarantee these loans from the banks on the 2ndary market, and banks w/ no money actually buy and hold onto these loans, they've essentially shut down the condo business.  Might as well make it a criminal act to build condos!    They say they want everyone living in the city core for energy consumption purposes or whatever, and combo that w/ cap and trade taxes that are coming----talk about a firing squad lining up in a circle!
 
 This is a crazy, knee jerk reaction that is what happens when u take sovereignty and liberty away from states, counties, cities, school districts, and individuals and let a bunch of assholes in D.C dictate a single standard for everyone in everyplace. 
 
Then again they are prob doing this on purpose to get their cohorts who they really work for to buy all these properties for pennies on the dollar  w/ little or no risk b/c the taxpayer is ultimately on the hook in case these billionaires can't flip them when D.C. changes the rules back to allow them to sell.   Scotch

See Video: www.realtytimes.com Click on Investor Report: Small Scale Investing Challenge.

Ravi: You said it right when you said knee jerk reaction to the failures and gross negligence of the past 20 years.
First lend to anyone and now to no one.
They really do not know what to do is the biggest problem and we have a bunch of self indulgent buffoons leading us

(Both Ravi and Matt invested a good sum of money building condos and now potential clients are not able to get financing because Freddy and Fannie have changed underwriting guidelines because Mortgage Insurance is no longer available for many conventional loans on condos)

Samuel (Me): One of the reasons (as stated) for this is that MI companies don't want to insure condos anymore.

SOLUTION:   Get your condos FHA approved.  FHA is really MI, MI that
is offered by HUD.  If you get your condos FHA approved normal FHA
guidelines still apply.  (Keep in mind that lender guidelines still
override FHA guidelines but some investors are still doing them so
long as FHA will insure them)

I don't know if this helps you but if you’re interested I can get the
info for you from one of my investors that does FHA condo loans.

Let me know.

More times than not condo projects rely on conventional financing so the projects are not FHA approved.  Let's say you bought one of the condos in the past and still own it, well, you're stuck with it because no one will be able to get approved to purchase your condo because chances are they will not have 20% to put down.  On the flip side, if your developer planned ahead he would have gotten FHA approval on the project so that you have a larger pool of potential buyers that can buy utilizing FHA guidelines (3.5% down)

Moral of the story: If you're buying, selling or developing a condo project or just a condo make sure it's FHA approved otherwise you may find yourself between a rock and hard place.