There have been some new discussion with mortgages and regimes.

There is a law that says that  if a certain number of people are behind in their regime payments within a certain condo complex, lenders are not allowed to lend in these developments.  This is really making it hard to sell some condos because they need cash buyers.

I was talking to a fellow Realtor in Chicago and she was telling me about this particular issue that was complicating one of her sales; financing would not go through on a purchase because there were too many people behind on their regime payments. 

She ended up going to the complex and found out that there were only two people too many behind on their payments; she paid their fines to bring them up to date which allowed the financing and the sale to go through. 

I’m hoping that we will not see this problem in Hilton Head, but this is already a problem in one particular complex.  This has been driven by many people going into foreclosure; when they can’t pay their mortgage they often stop paying regime fees and insurance. 

I’ll keep you posted on this – it is something that is new and we don’t know all the details, but it is definitely concerning to all of us.