This building has had a shitload of reo’s.

Often this situation will result in so many defaults that the HOA is underfunded to the point of true financial distress.

If that occurs, then no bank will lend (for fear of the the insurance going unpaid or value dropping yet further).

In this case (and I don’t have inside info) the bank who is the seller is likely just being extra careful.

I say that because I have seen financing there recently.