More On Buyers Backing Out Of Purchase Contracts In New Construction Condo Projects

Another story is being reported on contract purchasers of units in new construction condo projects - this time by The Wall Street Journal. It reports:

• "For the nation's real-estate lenders, the other shoe may be about to drop: condominiums. Already plagued by rising home-loan defaults and foreclosures among overstretched consumers, major markets across the country -- including parts of Florida, California and Washington, D.C. -- are seeing rising foreclosures and bankruptcies of entire condo projects. The problems are emerging as some buyers who signed contracts to buy new condos two to three years ago, when construction was just starting, seek ways to back out as they encounter trouble getting financing in the suddenly dicey mortgage market. Falling prices are forcing appraisals down, so banks aren't willing to lend the full amounts that people committed to in the sales contract. "Closings that are scheduled to take place are not taking place," says Marvin Moss, a North Miami Beach real-estate attorney. He is suing several developers to help clients get out of contracts."

For more, see Default Lines - Condo Troubles Further Squeeze Property Lenders (Full Force of Glut Is Felt As Buyers Back Out; 'More of the Iceberg') (if link expires, try here).

For other stories on new construction condo buyers backing out of purchase contracts, see:

• Spanish View Towers: Will people get their money back?
• Investor sues to bail out of four WCI condos,
• For a copy of one of the lawsuits, see Cherin Federal Lawsuit,
• Boom of condo crash loudest in Miami (The pain is acute here but unbearable in S. Florida) (Orlando Sentinel - 8-27-07).

Go here for other stories on real estate speculators looking to back out of purchase contracts.

Go here for other posts related to the Miami condo market problem. zebra