Hello Animal Farm:
For all new homes developments there is a magical "tipping point" when lending gets a bit easier, and that is when 50 percent or more of the homes have closed escrow. For many developers today, the possibility of bankruptcy and the failure to complete the project is so great that lenders are beginning to become a bit "gun shy" with developments where the majority of homes have not yet closed escrow. Bank of America and Wells Fargo, for example, are two of the most active lenders in our area and both firms must "prequalify" a complex before lending. To do this, it can take between 2-3 months of paperwork for the bank to feel comfortable enough to lend in the development.
As to the current delay in closing escrow, there can be many reasons why this has occurred, including incomplete units, wait periods for Certificates of Occupancy (or "COOs") or cash flow issues with the developer. However, I suspect that the previous prequalification from the banks may have expired (these are updated periodically, usually every three to four months) and the banks are again reviewing the financials, budget, and sales data to determine if the property is still "loan worthy."
Peninsula Real is well placed, priced and appointed, so it may be unnecessary for the developer to exercise further price drops to sell the remainder of the available homes. If youichoose to purchase from the developer, remember to take your own Realtor with you to represent your interests.
Grace Morioka, SRES, e-Pro
Area Pro Realty