Home Buying in Fremont>Question Details

goel.puneet88, Home Buyer in Fremont, CA

I am buying a condo that is 32 units and 6 condo's are delinquent in HOA. The association is trying to hard to collect backlog HOA.

Asked by goel.puneet88, Fremont, CA Fri Jan 18, 2013

My condo is one of the delinquent unit which at closing will bring down the 5 condos out of 32. The Fannie mae rule is no more than 15% delinquency is allowed. At closing 5/32 is 15.625, do you think fannie mae may approve a waiver? How long waiver processing takes? I see 24-48hr on fanniemae.com.

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Alain is on the right track. If your loan agent is able to get a Fannie Mae "limited review" finding then the requirements for condo documentation should be confined to adequate insurance and a statement by the appraiser that there is no litigation. I would assume your loan officer has made every attempt to obtain the limited review and sometimes it is not possible. But ask to be sure.
0 votes Thank Flag Link Fri Jan 18, 2013
I think you should be doubly concerned that your HOA may have the ability to foreclose on delinquent units, including yours.
0 votes Thank Flag Link Fri Jan 18, 2013
Pacita, my unit will be fully paid at closing for past dues. I donot see how HOA will foreclose in that case.
Flag Fri Jan 18, 2013
15 is 15.
I have seen it where the lender does not count the pending property as a current and it would still be considered 6/32.
Have your loan officer discuss directly with the underwriter for clarification.
0 votes Thank Flag Link Fri Jan 18, 2013
If you are planning on living there I've seen it where your lender will just ask for 25% down instead of 20% down and still be able to close the loan without Fannie Mae approval. I'm assuming that you were putting down 20%.
0 votes Thank Flag Link Fri Jan 18, 2013
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