Builder delays could kill condo deal

REThink Real Estate
Published on Jul 23, 2009

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by CareyBot

Q: I am having serious problems with the new condo I am trying to buy. We have been in escrow since early March, when we gave the builder a $5,000 deposit, and have had nothing but issues ever since.

First, the lender that the builder said I had to use couldn't close the loan, so the loan was moved to a second lender. Then the builder lost its FHA approval and just got it back last week. Since they have delayed the process so much, interest rates have risen to the point that the builder cannot live up to the deal it sold me on: I was promised a 4.75 percent interest rate with 6 percent closing-cost credit.

At today's interest rates we can't afford the condo. We have met every deadline the builder has given us, and it has not lived up to its