Financing in Los Angeles>Question Details

Scott4444, Home Buyer in Los Angeles, CA

I am in the process of refinancing the loan on my condo with Bank of America.

Asked by Scott4444, Los Angeles, CA Fri Jul 24, 2009

They tell me they are ready to close except that they need an updated budget from the HOA. Unfortunately, my HOA says they cannot provide a budget in a timely manner. They estimate it will take them 3 months to do this. However, B of A will not give me a 3 month extension. Is there anything I can do to save my loan?

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Answers

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Bank of America wants current numbers and if the only budget available is more than 12 months old, I understand their concerns. They want to ensure that your HOA is liquid and has adequate reserves. I would find out when your fiscal year ended with your HOA. For example, I am working with an HOA now that just close their year June 30th, and I already have the year end budget & P&L. But let's say a June 30th year end is what you are working with. It is reasonable that they do not have the new budget available. But can they give you a budget that was possibly updated Jan 1st? That is something.

Do whatever you can to get something to B of A. Getting loans through with condos these days is tough. You are so close to the end...there has to be a way to close on time. Elevate it to B of A management to find out what would be sufficient to address their budget concerns.

Good luck!
Julie Thall
jthall@rpm-mtg.com
1 vote Thank Flag Link Fri Jul 24, 2009
Scott4444,

My advice is to see if you're eligible for a Home Affordable Refinance Program (HARP). With condos, if you fit into the HARP guidelines you will sometimes get a waiver of both the appraisal and the condominium documentation requirements. I have several of these transactions in process right now, all in CA, and I can tell you that this is BY FAR the best way to be refinancing any condo in the current lending environment.

There is no cost or obligation associated with having me look into this further for you and if you're interested, please get in touch. In your current situation, I cannot see a downside to giving this a shot.

Best regards,

Rob Spinosa
rspinosa@mortgagemasterinc.com
0 votes Thank Flag Link Fri Jul 24, 2009
Simple Answer: Find out if there are other condos in escrow in your complex OR ones that are On the market, or even ones that have recently Sold.

Contact the Listing agents, they need to order "HOA Resale Package" for their own deals & in this package lies the Prized BUDGET document you need. Tell them Pretty Please, you need a copy of this.

If you like, I can compile a list of agents names & numbers for you to call to see if they have a recent copy.

It's absolutely CRAZY that your HOA is saying they can't get this for 3mos.

If you can't get this from a listing agent, have an attorney write a strongly worded letter, stating that it will be the HOA's fault you didn't get your loan lock (or something like that) and threaten a lawsuit for damages.


emilyknell1@yahoo.com
0 votes Thank Flag Link Fri Jul 24, 2009
Our recommendation is to get after the HOA........there is no earthly reason why this should be the case. If the HOA needs to approve the new budget, our recommendation it to submit both the old budget as well as the unapproved new version.

Beyond this contact an attorney for their advice......maybe they can light a fire under the HOA...

Good luck
0 votes Thank Flag Link Fri Jul 24, 2009
Why would it take 3 months for a budget would you not all ready have on in place.

However I understand budgets don't happen over night or have HOA speak with B A determine what would work with their guidelines.

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0 votes Thank Flag Link Fri Jul 24, 2009
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