Look peple that buy with little cash makes them a liability.
In plain words they have no skin in the game.
How do you expect to keep their feet to the fire when property values go South and their mortgage values are more than their property values.
Given the choice they walk. Leaving many of the communities skipped on their maintenance.
It takes months or even years to spread the expense to the other owners. Yes there seems to be some improvement in helping condos recup their monies from banks who uptill now were no help.
Today associations can excercise the same rules and force banks into foreclosure.
How does that help people with a FHA loans? Not much unless they make it a Federal Case. I am not suprised if it is not already in the works.
It boils down to ask how is it that FLORDA IS NUMBER ONE IN FORECLOSURES.
Owning is not a recreational pass time that comes to all . Renting is no shame. Buying when you have no money is as stupid as the ones that give you the right to drive without a license.
Simply put, either the developer has not sought the appropriate approvals or cannot meet the regulatory requirements to obtain approval. Here are just a few of the requirements:
1. Minimum number of units: Projects must consist of two or more units.
2. Insurance Coverage: Projects must be covered by hazard and liability insurance and, when applicable, flood and fidelity insurance (See Section VI, Insurance Requirements).
3. Right of First Refusal: Right of first refusal is permitted unless it violates discriminatory conduct under the Fair Housing Act regulation at 24 CFR part100.
4. Commercial Space: No more than 25 percent of the propertyâ€™s total floor area in a project can be used for commercial purposes. The commercial portion of the project must be of a nature that is homogenous with residential use, which is free of adverse conditions to the occupants of the individual condominium units.
5. Investor Ownership: No more than 10 percent of the units may be owned by one investor. This limitation also applies to developers/builders that subsequently rent vacant and unsold units. For condominium projects with ten or fewer units, no single entity may own more than one unit within the project; all units, common elements, and facilities within the project must be 100 percent complete.
6. Delinquent Home Owners Association (HOA) Dues: No more than 15 percent of the total units can be in arrears (more than 30 days past due) of their condominium association fee payments.
7. Pre-sales: At least 50 percent of the total units must be sold prior to endorsement of a mortgage on any unit. Valid presales include:
â€¢ Copies of sales agreements and evidence that a mortgagee is willing to make the loan1
â€¢ Evidence that units have closed and are occupied; OR ;
â€¢ Information from a developer/builder that lists all of the units already sold, under contract, or closed (e.g. a spreadsheet, chart, or listing used for the companyâ€™s own tracking purposes) that is accompanied by a signed certification from the developer (Attachment F).
8. Owner-occupancy Ratios: At least 50 percent of the units of a project must be owner-occupied or sold to owners who intend to occupy the units.2 For proposed, under construction or projects still in their initial marketing phase, FHA will allow a minimum owner occupancy amount equal to 50 percent of the number of presold units (the minimum presales requirement of 50 percent still applies).
9. Legal Phasing: Legal phasing is permitted for condominium processing. It is recommended that developers submit all known phases for initial project approval. FHA will not accept market phasing in
For the complete list, visit:http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/fi
Always a pleasure!
Jennifer Sommers, Nestler Poletto Sotheby's International Realty
One South Ocean Boulevard, Suite 11 âƒ“ Boca Raton, Florida 33432
O. 561.235.7777âƒ“ C. 786.390.9299 âƒ“ F. 561.997.2614
Jen@AgentBoca.com âƒ“ http://www.AgentBo
Check this site to find out which condos are FHA approved: http://fhamortgageinfo.com/
As stated there is a certain owner occupancy ratio required to obtain FHA loan for that complex, some of them can be added to the list if the mortgage broker does a little work to see ratios changed. If you buy a Fannie Mae foreclosure condo and use the HomePath financing for owner occupant they will waive the requirement, The pitfall is for both Realtor and association is it makes this a hard sale to find a cash buyer or investor with large downpayment. If you are looking to purchase I can search unit that might suit your needs, feel free to contacxt me.
Russ Greenberg, Realtor, ePro, RELO
561 445 8782
Keyes Real Estate, Mortgage, Title, Insurance, Concierge service
Eloise P. Wexler, II
The Pier Group, A Real Estate Company
FHA designations were scheduled to expire on more than 25,000 condo buildings nationwide as of the end of September, and only about 8 percent of those have been re-approved for the government mortgages.
I live and work in the condos on A1A... a full time resident almost 25 years.
Gary (561) 306-7653
approval of new owners . The low downpayments allowed by FHA may be a
reason. But more likely the lack of current status as an approved FHA Condo
and jnability to meet FHA requirements for same would be the most common.
As far deal specific concerns there would be the Minimum Property Standards
required for approval . Many Short Sale situations would not have the flexibility
in the deal to remedy MPS issues.
FHA is a great program,but not for use in all situations!
Bob Brubaker Highlight Realty Palm Beach County Fl.
There can be many reasons and some are a) it will open the market to potential buyers that can qualify with less stricter guidelines, less down payment, b) the condo does not meet the FHA guidelines, then odds are it's a non-warrantable condo. Check this site to find out which condos are FHA approved https://entp.hud.gov/idapp/html/condlook.cfm?CFID=16335332&a . Good luck!
Realtor & Lic. Community Association Manager
East Coast Realty Group LLC