Calypso added to No Lend List

Calypso condominium denied financing

Update: July 2017:  Normal condo loans are available at Calypso again.

In October 2016 Calypso was added to the no lend list for the banks that finance condos in Panama City Beach. One of the considerations for providing normal condo loans to gulf front condominiums in Panama City Beach is pending litigation.  Any litigation banks feel could severely impact a condominium association can cause condominiums to be added to this list.  In October of 2016 the bank that buys the majority of the Panama City Beach condo loans on the secondary market added Calypso to this list.

 

Cases the banks are concerned about

A legal disagreement over internet and phone cables

Pacifica BRSW, LLC (aka the onsite rental company) filed suit against the Calypso Association in July 2016. There is a disagreement over exclusive power and authority over the Telephone, Cable and Telecommunications Systems. This is covered in the condo docs.  Calypso Association had IPacket come in and provide internet access for condominiums.

A legal disagreement over rentals and other rights

There is also another lawsuit between the Calypso condominium association and the onsite rental management company. There is a disagreement about the rights of the onsite rental company and whether or not anyone is interfering with those rights.

What this means for Calypso condos for sale

I am hoping this is not the next Shores of Panama (which has not had normal condo loans available since early 2014).  The lending issues Calypso has are not nearly as problematic. Hopefully the association can provide lenders documentation to make them more comfortable with these two lawsuits.

What is the recent impact on sales?

Calypso condominium has strong demand and capable buyers for quite some time now. 12 of the first 24 sales in 2016 (while normal condominium lending was available) were cash buyers. Once normal lending was no longer available 11 of the next 12 buyers purchased with cash (the other sale appears to be owner financing). With 36 total sales this year and 39 sales in 2015 there really was no measurable impact on Calypso condo sales to date.

Tags: Calypso Condominium, Condo Financing

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