I'm not sure I understand this. Some one has to buy the first - and second and third - unit in a condo development, and they probably can't pay cash. Why wouldn't a bank lend money to those who buy the first units that open up in a condo? Now if the condo is built in a ghetto and the units are never gonna' sell, that would make some sense then, but no bank would lend to a builder for a development so bad or stupid it wouldn't sell, would it?

My bank sends its own inspector out to my house every two weeks to ensure that all the draws I've made and materials purchased and contractors paid have resulted in commensurate progress in completing my house. Of course Oly Fed didn't need any bailout money either.

Sg