The real estate market is fraught with complexities, and one lesser-known hurdle is the so-called “condo association blacklist.” This private government list, linked to Fannie Mae’s guidelines, includes condo associations that do not meet certain criteria for conventional financing. Reasons for making the list include financial instability, structural issues, and legal entanglements, among others.

The Impact on Buyers and Sellers

For potential buyers, this blacklist can significantly limit financing options, making it difficult to purchase units in affected buildings. Sellers, on the other hand, may find their pool of potential buyers shrinking, potentially affecting property values.

Understanding the Criteria

The criteria for being blacklisted focus on the financial health and governance of the condo association. This includes aspects like delinquent dues, insufficient reserve funds, and ongoing litigation. Structural problems with the building can also be a red flag.

Strategies for Buyers

If you’re interested in a condo that’s on the blacklist you need to move forward very carefully. Here are a few strategies:

  • Explore Alternative Financing: Look into non-conventional loans that might have more flexible criteria.
  • Investigate the Association’s Status: Sometimes, condos are on the list due to temporary issues. If the association is actively addressing these, it might soon be removed.
  • Choose a condo not on the blacklist:  The risk of buying a condo that is blacklisted is very high and the transaction is large.  You don’t want to buy a depreciating asset.
  • The Condo Blacklist is keeping up with the latest information regarding Condo Association Blacklist developments.  We encourage you to stay informed.

Moving Forward for Associations

Condo associations on the blacklist should take proactive steps to address the underlying issues. This often involves improving financial practices, completing necessary repairs, and resolving any legal matters.


The condo association blacklist adds an extra layer of consideration for anyone involved in the condo market. By understanding the implications and exploring available options, both buyers and sellers can navigate these challenges more effectively.

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