A bank in Florida originated mortgages on Miami Beach condos to foreigners. These units were going for $500-$1000 a square foot.
When the economy soured, they boogied back to their home countries and defaulted on the loans.
I would suggest the lenders have more common sense in that situation.
“Might I suggest a third requirement: the homes must be 100% owned, i.e. no debt.”
I would not be suprised if this is the way most of these houses will be purchased anyway. The US dollar is so cheap right now, there are already a lot of foreigners, especially those extremist Canadians(SARC), that are buying up vacation homes in Fl and AZ.
I agree with you though, that a minimum percentage of purchase price be a condition. I would think it would be difficult for a foreigner to get financing for more than 50% anyway.