What’s Up with the Condo Blacklist? What Walnut Creek Buyers Need to Know

If you’re interested in real estate in Walnut Creek, the East Bay, or anywhere in California, you may have heard about the so-called “condo blacklist.” But what is it exactly, and why should you care if you’re buying a condo? Here’s the scoop.

What Is the Condo Blacklist?

Recently, the federal government revealed it maintains a list of condo complexes nationwide where lenders won’t back loans. Simply put: if a condo is on this list, banks hesitate or outright refuse to lend money for buyers wanting to purchase units there.

Why? Several reasons:

• Structural issues with the buildings

• Insurance challenges, especially in areas with wildfire risks

• A high percentage of renters versus owners, which raises risk concerns for lenders

This blacklist emerged in the wake of the tragic condo collapse in Florida a few years ago, which raised awareness of safety and financial risks linked to condo lending.

Walnut Creek’s Place on the Blacklist

Here’s the surprising part: Walnut Creek ranks #3 in California for the number of condo complexes on this blacklist — a total of 35 complexes. A significant portion of these are connected to Rossmoor, a well-known local community facing insurance difficulties due to wildfire risk.

This makes it especially important for homebuyers in Walnut Creek and the broader East Bay region to be aware of this issue when considering condos as an investment or home.

Why It Matters to Buyers

The blacklist means that financing options may be limited or more costly for certain condo complexes. It’s not just about the price or location anymore — you need to verify if you can get a mortgage for the condo you want.

Unfortunately, the exact list of blacklisted condos is confidential, making it hard for buyers to know for sure which properties are affected. However, experienced local real estate professionals in Walnut Creek often have insight based on their market activity.

What You Can Do

If you’re thinking about buying a condo in Walnut Creek or elsewhere in the East Bay, here’s what we recommend:

• Talk to your real estate agent early about financing concerns

• Confirm with lenders about loan availability for specific condo complexes

• Stay informed about insurance and structural issues in the building

• Consider consulting experts who know the local market well

At Ask Brendan, we help buyers navigate these complex issues so you don’t get blindsided in your search for the perfect condo in California.

Questions about Condos or Real Estate in Walnut Creek?

If you want to learn more about the condo blacklist or have any questions about buying or selling real estate in Walnut Creek, East Bay, or anywhere in California, just message us. We’re here to help you make the best decisions for your home and investment goals.