Financing in Palm Desert>Question Details

Leslie, Home Buyer in Santa Clara, CA

Fanny / Freddy - Social Dues

Asked by Leslie, Santa Clara, CA Wed Dec 30, 2009

We have applied for a loan on a condo in Oasis Country Club, in Palm Desert, CA. Our lender has informed us the the property is unlendable due tothe social dues collected under the CCRs. The social dues go to fund the restaurant in the development and this is not approved by Freddie or Fanny. Has anyone else run into this situation?

Thanks

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Leslie’s answer
Hi

As I stated earlier, we were denied the loan due to the HOA funding in part the restaurant at the country club. We checked with another lender and had the same issue. Here is a link which explains a bit of the rules and why it is becoming a problem on existing properties which have been approval in the past.

http://www.guerrygroup.com/images/Financing_Vacation_Condomi…

Item 8 in the table is the item which is causing the issue.
0 votes Thank Flag Link Tue Jan 5, 2010
Hi Leslie, Fannie/Freddie often do not approve properties for different reasons. Some common reasons would be building codes, percentage of owner occupancy, and pending litigations associated with the property/community. Though more than 95% of purchases under $100,000 are cash purchases, you can still find properties that will qualify for lending. Make sure your Real Estate Agent is knowledgeable in doing their best to determine 'lendability' on properties prior to showing and making offers.



I can help with any of your Las Vegas Real Estate needs or questions; feel free to contact me direct.

Search the Southern Nevada MLS Live at http://www.markfleysher.com

Sincerely,

Mark Fleysher, MBA, Realtor
Broker-Salesperson
702-291-8186
mfleysher@gmail.com
Web Reference: http://www.markfleysher.com
2 votes Thank Flag Link Wed Dec 30, 2009
Hi Wendy

I will let you know the outcome, this is just very surprising to me. The lender stated it is not a problem with our credit, our scores are nearly 800. Nor our credit, we have no outstanding loans or bills. He told me today that everything was fine until they received the CCRs for the development and discovered the noted "social dues" of $600 per year. If this turns out to be the case, I would think many developments in the Palm Springs areas will have trouble since this appears to be a common practice in the area.
0 votes Thank Flag Link Wed Dec 30, 2009
Leslie,
I find this absolutely amazing. I have not heard of such an incident. It is not unusual for Country Clubs to have a social fee for the use of the restaurant. usually a use it or lose it type situation. This gives the homeowner the same amount as they pay to use for the purchase of food and beverages for the month. If you don't use it, you are still charged this amount. It helps the association to fund the restaurant, especially in a resort community when during the summer, many owners are not here to spend dollars they usually would. I would love to hear the outcome and post it on lmy blog. Please keep in touch.

Wendy Formica, CRP, PMN, ePRO
Windermere Real Estate
Indian Wells, CA
760-567-2332
http://www.wendyformica.com
wendy@wendyformica.com
0 votes Thank Flag Link Wed Dec 30, 2009
I have run into this issue due to the ratio of commercial space to residential space on some projects in Long Beach CA.

Give me a call and I would be glad to research it a bit more for you.

Ron Hall
909 214 0438 CA Cell
0 votes Thank Flag Link Wed Dec 30, 2009
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