You should talk to your Attorney, Realtor & Lender to advise you. This forum can be great for information but I would look to those that are familiar with your specific transaction to advise you.
Best of Luck, Ken Dooley.
I'd agree with a lot of what was written to you here, but I'd also add a few things. Definitely have your real estate attorney review the contract and determine whether or not you have an "out" first.
Even if the rest of the downtown condo market is selling well, you have to ask yourself (as the bank is asking itself and thereby demanding that the development be at least 50% cold out before closing) is this particular building (a market in and of itself) competitive with the rest of its competitive market?
If the value of the market has changed (and lowered), then you probably would not want anyone (developer, lender, third party) give you a 2nd loan that will encumber you up to 95% of the value of the unit when you agreed to purchase it. I would assume that if the values in the area are coming down that you would be in a very good position to find a similarly desirable property in the same market area at a lower price than the one you agreed to pay 2.5 years ago.
Consult with your attorney and if you can get out of the contract and still want to- do so (or at least retain the option to get out of it). There should be plenty of other places to purchase in this particular market. Good luck.
Broker Associate, Sudler Sotheby's International Realty
Just my two cents, but sometimes you need to look beyond whether it can be done to why it should be done.
I don't work for the Developer, Lender or the company marketing R&D 659 but I am familiar with the project having viewed it a number of times with current and past clients.
I've been informed that the Developer of R&D 659 is now stepping in to provide Gap Financing through second mortgages out of their funds up to 95%. The main lender for the project that has worked with many buyers will do 80% with the developer providing a 15% second mortgage.
I'm not aware of your specific situation and would also advise you to consult with a Real Estate Attorney to advise you of your options and obligations under the contract. Obviously a lot has changed in the past year but it appears the Developers are prepared to work with Buyers who are having difficulty obtaining financing through traditional sources.
Feel free to contact me via my profile and I'd be happy to connect you with the person representing the lender who can review your financing and an Attorney to assist you.
Best of Luck, Ken Dooley.
it depends on how much you put down. if you put down 20% you will be fine to close without PMI, but anyone that put down less than that will need to wait until the building has sold enough units. If you did put less than 20% down I would check with your lender to make sure the financing is all set, because it may not be. My lender failed to tell me anything until 3 days before my closing.
My understanding is that financing options other that the traditional 15% 2nd Bank lender are being pursued. Investors along with sellers can step in and provide effective financing options similar to the 15% previously available.
Great that you have an Attorney to guide you through this process. It's likely the wait and see approach adopted by your Attorney is to determine what financing options being worked on are available to you as you approach closing.
Best of luck, Ken Dooley.