Home Selling in 07601>Question Details

Khakis1999, Home Seller in 07601

hi. Ive found a REO property in hackensack that i would like to make an offer on, however the listing agent has explained to me that the last offer

Asked by Khakis1999, 07601 Sun Jul 25, 2010

fell through because the unit is titled as a condo when it is in fact an attached townhouse, attached on the side to one other townhouse. since there is no association, the condo questionarre can not be filled out and the deal dies in underwriting. HE says the only way to get a mortgage on this unit is to put 20% downpayment. IS this correct? I have been poreapproved for a mortgage which is no money down and no pmi for condo or single family home. I have called the mortgage company and the rep states that it may be a problem but the only way to find ou is to apply..Nyone have a situation like this or any ideas? thanks

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Hmmm. First of all a condo is not a style, but a type of ownership. You can have a townhome, apartment, or even a single family, and it can be a condo. So, I am not sure I fully understand the situation. It appears that this is just what is called a semi attached home. They are easily lendable, and are usually fee simple ownership with no need for a condo questionnaire. I do know Hackensack pretty well though, since I lived there and owned property there in the past. If you contact me and let me know what property you are talking about I would be able to better assist you, and more importantly, recommend a lender that could get this done for you. I would, of course, respect whatever agent relationship you currently have. Just looking to help.
1 vote Thank Flag Link Sun Jul 25, 2010
First thing is a condo (condominium) is a type of ownership, towhouse is the style of condominium it is. If i am assuming right, the property was a duplex (2 units) townhouse style means it has an up and a down and was condexed, seperated and sold as individual units. So there is 2 units in this association. The key is no matter if there are 2 units or 200, in order to become a condo the person, builder or developer had to apply for and furnish a set of condominium docs, rules and regualtions to the state to be approved as a condominium.

In most condexes each side takes care of itself, they cut their half of the grass, shovel their own dirveway and sidewalk and paint the trim on their half. The problem is there should be an insurance policy on the building as a whole in the name of the association, usually in a condex it is split 50/50 and paid in full when do. The problem lays with what if the property needs a roof, that is great there is no monthly payments however long term maintenance needs to be considered, unless you have a large balance in your checkbook to pay half the cost of the roof when that comes up.

Where it is is a condo, the assoication is only teh 2 owners. so the 2 current owners should be able to fill out that condo questionaire. The problem is there are no more spot approvals with fha, so your loan officer will need to help you get these units association fha approved. The owner should help as well as it will help them sell, the owner not selling should help becuase it brings up the value of their condo.

good luck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Jul 26, 2010
Regardless of whether you are going FHA or conventional, there are ways of accomplishing what the lender requires to close these deals. Please contact me directly for further information.
0 votes Thank Flag Link Mon Jul 26, 2010
I have sold similar properties in the past, they used to be 2 family homes and now the units are sold separately as side by side condos/townhouses and there is no association fees as explained in an earlier answer, there were just 2 people in the condo so there are no maintenance fees, but the insurance was different due to the condo situation and the down payment part I do not have enough details on but it may not qualify for an FHA loan as mentioned earlier! Good luck with your purchase.
0 votes Thank Flag Link Mon Jul 26, 2010
From your question I it appears that you are applying for a FHA or similar loan.
By and large FHA will only lend on condos that are in pre-approved developments and the approval requirements are pretty stringent.
They will not approve the style of side by side townhouse that you are describing so at a very minimum you are going to have to put 20% down
0 votes Thank Flag Link Mon Jul 26, 2010
There are numerous questions I would need answered to be able to help you. First, how old is this building? I recently sold one side of a similar style as you describe - the town required that the builder consider the construction as "condo" because there is a common wall, roof, etc. There was no "condo association" set up, but you do have to establish certain things between the 2 parties who own each side for common expenses such as lawn care, snow removal and most importantly the master insurance policy that covers shared expense like the roof. I would be happy to discuss this with you further. Please feel free to call or email me directly.
0 votes Thank Flag Link Sun Jul 25, 2010
Your agent should be able to come up with the documentation proving whether it is a condo or merely an attached house. If it were a condo, at least here in NYC, there would be an offering plan and other documentation. There would have been a sponsor of the development which would eventually move over to having a board or homeowner's association. I would also suggest you consult with your attorney. This is not a matter of opinion, it is one or the other and the right documents will prove which it is.
0 votes Thank Flag Link Sun Jul 25, 2010
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