Confused, Other/Just Looking in Elk Grove Village, IL

I have a contract on my property for sale. The buyer is completely qualified and all was well until we found out the assoication has a large amount

Asked by Confused, Elk Grove Village, IL Wed Mar 17, 2010

of homeowners past due on their assessments. (Higher than the Fannie threshold of 15%) My buyer is putting down more than 20%. Any advice on where we might be able to secure a mortgage or other options to research?

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8
I wonder why the buyer still wants the property. Sooned or later the HOA will need fix that problem.
1 vote Thank Flag Link Wed Mar 17, 2010
You may want to try a local savings bank that does not sell to Fannie Mae, or a credit union that also holds its loans.
1 vote Thank Flag Link Wed Mar 17, 2010
That is another issue as well, or could be. Many lenders want at least 70 percent sold or in contract, whereas a portfolio lender with a good interest rate could go with 50. Most who will do below 50 percent will have a higher interest rate or will only offer an adjustable.
0 votes Thank Flag Link Wed Mar 17, 2010
Sometimes they can stretch to 16 or 17%. Otherwise you are stuck renting it out, looking for a cash buyer, finding a small lender without the rules, paying enough past due accounts for other people to make it work or living there longer.
Web Reference: http://www.realtybob.com
0 votes Thank Flag Link Wed Mar 17, 2010
Yes it is a condo. We are a newly turned over association and still have developer owned units.
0 votes Thank Flag Link Wed Mar 17, 2010
Confused
Is it a condo? I am guessing it is because that is the only one that cares about the homeownership's financial position. 20% means they are going conventional so that is the good news. Now I do know that much about the situation but as much as I hate to recommend them but BofA does do condos that do not have the best financial representation. I am not sure what theirall of their conditionals of analysis are but when a condo could not finance thru FHA I did get it through BofA. Another lender told me... she could not have done it either so it was a good thing I went with BofA.

Good Luck
Web Reference: http://www.di4homes.com
0 votes Thank Flag Link Wed Mar 17, 2010
You'll need to go to a local bank and find a portfolio loan/lender. This is happening a lot right now and until these things get resolved (or FHA loosens their standards...which they've just not so much tightened as they have cracked down finally on what was already there), this is your only option.

Thanks,

Amy
Web Reference: http://www.footeteam.com
0 votes Thank Flag Link Wed Mar 17, 2010
You might consider selling with seller financing with a 1-2 year balloon.
0 votes Thank Flag Link Wed Mar 17, 2010
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