Home Buying in San Diego>Question Details

Byren, Home Buyer in San Diego, CA

What clause can I use to protect my seller when accepting an FHA buyer offer?

Asked by Byren, San Diego, CA Thu May 27, 2010

I'm a realtor representing the seller of an condo conversion. We are negotiating an offer from a buyer with an FHA loan. I concern about accepting the offer and finding out down the road that the property do not meet FHA requirements.

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Answers

4
If you are an agent you should not be representing yourself as a home buyer--and if you are an agent, ask your broker owner the question or consult with an attorney.
1 vote Thank Flag Link Thu May 27, 2010
You can check the FHA status of a complex by doing any of these:

1) Goto https://entp.hud.gov/idapp/html/condlook.cfm and just put in the zip code. Try to find the complex on the list. If its on there, you're golden, if not, you'll need a spot approval...goto #2
2) Do a search for solds and add the field 'complex/park". Justput a portion of the name in and use the 'contains' option. Look at the last 10 solds and see if any where financed with FHA. If so, you should be able to get a spot approval. If not, goto #3.
3) Have the lender call the HOA to determine the possibility of a spot approval.
0 votes Thank Flag Link Thu May 27, 2010
Byren,

You would want to check the following:

1) What is the owner occupancy in the building? You can get this info from the management company.
2) What is the percentage of delinquencies ? Also management company question.
3) The most crucial is checking to see if the building is FHA approved. Have a lender you trust check to see if the building is approved. A lender I work with who does alot of FHA/VA loans is Linnea Arrington with San Diego Funding. 619-260-1660. She would be a great resource for you.

I would do the above first before doing any further negotiations . If any of the above fail the test you won't want to persue a FHA buyer.

If the building passes the above test, then you should speak to your broker as to how to protect your seller.

Good luck,

Rosemary Joles
619-405-7673
Homes@InHarmonyWithYourDreams.com
0 votes Thank Flag Link Thu May 27, 2010
Byren check if the property is on the approvesd list. If it is not get someone to DELRAP it quick. Your seller may have to beg the buyer for an extension.
0 votes Thank Flag Link Thu May 27, 2010
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