Some condo associations maintain a list of owners want to rent. In one association, the complex's waiting list of owners who want to rent is at 39, compared with zero in 2004. Condo associations don't want the percentage of rentals to go too high. They don't want it to turn into a renter community. Some have a hardship policy in place. Owners have to be almost destitute to be on the list. Some associations patrol for owners who rent units out of turn.

 

Real estate attorney Seth Weissman questions the basis of lenders' concerns when it comes to mortgage loans --- the notion that renters are detrimental to a condo community. "You could live on a street where 100 percent of the homes are rented, and when you go to apply for a mortgage, no one is asking you, 'Well how many rentals are on the street of this single family home?' " he said. However, Weissman hasn't seen any movement on the federal level, or among private lenders, that really address the problem. That keeps condo owners waiting to sell or reach the top of the leasing waiting lists.

 

Somone just commented to me: "this latest series of entries is quite negative and you don't offer any suggestions for what to do about it". The purpose of this blog is to educate buyers and sellers about real estate. In this market, some information is negative. Having said that, I will say that sellers of homes or condos in this market must accept the fact that their home isn't worth what it was worth 3 years ago. Some prople who are "upside down" can't afford to sell. But some can. The only good news in this market is that the loss you take on the sale of your home will be offset by what you gain on your next purchase. Home prices are down almost everywhere. If your home is worth 20% less that it was, the home you will buy is also worth 20% less than it was.