contract on a loft downtown with HOA delinquincy issues!!
and a HiCap down payment assistance. I was set to close this week and at the last minute I was told by my loan company that the building is showing 22% delinquencies in the HOA. They said because that number is bigger than the 15% that Fannie Mae allows the loan cannot close. The HOA says that they are not in debt, have reserves and makes money in other ways they are not too worried about the delinquencies. Plus, most of that money comes from the 8 foreclosures in the building. My loan company is small and sells everything to Fannie Mae so I don’t know if they can get around this. My question is… can anyone get around this? Should I find a bigger lender? Does everything have to conform to Fannie Mae guidelines? If I go with a new lender do I have any obligation to the old one? Do I have to pay for the appraisal even though they couldn’t do the loan? I am in a tight spot as I will be homeless next week if I cant make something happen soon!
Outstanding question - put the componants of the question together 1) HOA in arrears and 2) you state 8 foreclosures. The lenders who foreclosed never really closed. Check out the property profiles and there to you shall see property taxes delinquent. How you ask with the trustee sale considered a bon -e-fide sale. The lender is not a lender and meerly foreclosed on its interest which is recourse. Fraud - maybe. Negligent against building homeowners YESSSSSSSSSSSS. I think I will go watch "Civil Action" again with John Traboltaa . . .
There might be a few solutions:
1- FHA is a big maybe- they'll want to "approve" the complex and many of the issues FannieMae dislikes may discourage FHA.
2- Portfolio lenders would fund this deal...with 20% down payment.
I would definitely instruct my agent and loan officer to try to get an exception from this based on the answer from the HOA.
All the best!
In retrospect the HOA questionnaire which revealed the delinquencies should have been received earlier to avoid being homeless but what is done is done
The only way around it would be a limited review questionnaire for the HOA which would have no reference to delinquent HOA fees but that would depend on the lender and what the loan approval says.
You have no obligation to stay with your current lender if they can no longer help you and as far as the appraisal fee that has to do with what was agreed on.
Other than Fannie guidelines there is FHA and portfolio lenders (savings & loans) that could be a solution for you but more information would be needed.
Hope this helped and good luck to you
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