According to a report in Las Vegas, Nevada, “the Palms has begun offering seller-backed financing to some 150 potential purchasers in the 599-unit Palms Place development.”

George Maloof, president of the Palms said on Thursday that the purpose of this plan is to assist those that have paid at least 20% of their down payment on their condos. This support will allow them the ability to acquire financing was not previously available.

With the downturn in economy it has been difficult for many homeowners to secure bank loans through traditional methods. Las Vegas in particular has been crippled by the economy as their main source of income, land-based casinos have frequently filed for Chapter 11 bankruptcy. Therefore trying to sell condos on the strip can be a challenging task.

“The problem is nobody seems to be lending,” Maloof said. “We’re trying to create an opportunity for people who bought condos but can’t find financing. We want to try and get them closed.”

In an attempt to keep the strip populated and provide possible housing for local casino employees, Maloof said that the interest rates would lie between 4.25% and 7% dependent on the down payment.

The condo purchasers will also be offered 30 months of payments devoted to the interest only in an attempt to help out owners until the market hopefully it’s a turn for the better.

Unlike the casinos in the area, the Palms recently paid off nearly 90% of what it borrowed from the banks in order to construct the high-rise. This reliability gave banks the opportunity to put their trust in the situation.

“We have relatively little debt,” Maloof said. “The goal is to get these units closed.”

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