Quote of the day: Blackballed buildings

“Not only are the banks protecting themselves, but they’re protecting the borrower. There’s a reason the bank doesn’t like that building.”

– Russell Martin, a loan officer for Perl Mortgage, on lenders’ decisions not to offer mortgages for homes in “zombie buildings.” There is no master list of blackballed buildings, but the Tribune says many lenders keep their own frequently updated lists of buildings that aren’t up to snuff, due to factors like the number of renters present, pending litigation, inadequate reserves, or delinquent assessments. Read the full story to get more insight, including several comments from our friend and frequent guest Eric Rojas.

In December Gary Lucido posted one such do-not-lend list at his Getting Real blog. Some of the buildings listed surprised Joe Zekas.

(Visited 66 times, 1 visits today)