The Real Deal New York

Buyers forfeit deposits at new developments

March 23, 2009 08:49AM

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Some buyers of new condominium units are being forced to walk away from their deposits because the mortgages they lined up before the credit crisis are no longer available, and they can’t get financing. Near closing dates, some banks are requiring buyers to put additional money up for the down payment if they want a mortgage. For conforming loans in New York City, banks are now requiring at least 20 percent down, and for jumbo loans, lenders want down payments of as much as 50 percent. Some buyers are suing the developers of new buildings for their deposits back. “If I knew this, I would never buy this apartment,” said Louis Andriopoulos, who put down $100,000 for a two-bedroom at Fifth on the Park in 2007, but lost mortgage approval. “Ten percent used to be more than enough [for a down payment] and I never had a problem with financing before.”

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