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Consumer Alert: Beware Of Happenings At Lofts On Post Oak

Consumer Alert: I personally really like the Lofts On Post Oak, but heard something very concerning about the project. According to a source that would like to stay anonamious, there are some lenders who have decided that they will not lend on units in the Lofts On Post Oak. The reason for this is because of the huge amount of mortgage fraud that occurred on loans granted for Lofts On Post Oak. Having a major bank make the decision that they will not loan on a particular building is bad for the home owners’ and if other lending institutions follow suit, you can nearly guarantee that meaningful price declines will be seen. If you are a Houston area home buyer looking for a Galleria loft and this building interests you, I feel like you might want to sit on the sidelines for a bit and see what happens to property values. I will continue research by contacting other lenders to see if they are making the decision not to loan on properties in this building as well and give an update on my findings.

This entry was posted on Saturday, May 2nd, 2009 at 6:06 am and is filed under Consumer Alerts. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

9 Responses to “Consumer Alert: Beware Of Happenings At Lofts On Post Oak”

  1. Janie Miller Says:
    May 6th, 2009 at 8:31 pm

    Great information. Another reason for buyers to talk with a lender as soon as they decide to start looking for their home.

  2. Shannon Ensor Says:
    May 9th, 2009 at 1:52 am

    I’ve heard of lenders not lending on condos if the buyer is FHA, but is Wells Fargo saying they won’t even lend on a conventional loan here?? I can definitely see how this could negatively impact the current homeowners at this project.

  3. admin Says:
    May 9th, 2009 at 9:50 am

    @Shannon Ensor: Yes, they are saying they will not originate any type of loan on this building not just FHA.

  4. Kevin Says:
    May 15th, 2009 at 9:07 pm

    Interesting — especially given that the website for Lofts on Post Oak still claims that “financing is available through Choice Home Financing, an affiliate of Wells Fargo Home Mortgage”. (In fact, the Wells Fargo affiliate is the only mortgage lender named on the website.

  5. admin Says:
    May 16th, 2009 at 1:29 am

    @Kevin: Now that is very interesting. Are you sure that Choice Home Financing is not a mortgage brokerage who holds a Wells Fargo line of credit. Because if this is the case then it makes sense that Choice would still orginate loans or we could have a situation where the information on the website is out dated.

  6. Ashlee Says:
    May 19th, 2009 at 8:42 am

    That is interesting. If I lived in that building I would be worried about my values and no one is going to want to buy in that building.

  7. Steve Hysinger Says:
    May 19th, 2009 at 8:08 pm

    This is so much a sign of the times. And the vultures begin hovering. Maybe a little more bailout money to the “right” bank would allow them to go in and start buying these units for pennies on the dollar.

  8. Charles Richey Says:
    June 15th, 2009 at 6:32 am

    We were starting to see the same thing here in Las Vegas last year. Certain projects would basically be black listed by some lenders. Most of those didn’t survive it either.

  9. Jim Gilbert Says:
    July 15th, 2009 at 11:13 pm

    Though I don’t work the Houston area, it is sad to hear this news, especially its possible impact on current loft owners. I will be interested to read an update when you have one.

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