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Old 06-07-2011, 01:45 PM
 
65 posts, read 184,270 times
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So I have a buyer for my Condo, and I am going through all the process for buyer getting financing and working towards closing. I contacted my HOA today, and I find out that there are 6 home owners who are past due on their HOA payments and this is in a development with 31 units, so this puts the condo at 19.3% homeowners delinquent. So based on the condo lending requirements now that puts the condo over the 15% delinquent homeowners. So there's a chance the buyer won't get the loan because the condo won't qualify.

Now question, is there any way around this? I did contact my HOA see if they can do anything as far as collecting from those homeowners or maybe they have something else in mind... Anyone else been through this, who can offer some advice? Thanks!
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Old 06-07-2011, 01:48 PM
 
Location: NJ
17,579 posts, read 41,664,880 times
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Depending on the amount, I wonder if you could make the payment on someone else's behalf? Let's say someone was only delinquent by $200. It would probably be well worth it to just settle the amount to get your house sold.

Now I obviously have no clue if you can even do that or if that would satify the requirement at all. But maybe it is worth checking out.
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Old 06-07-2011, 02:17 PM
 
Location: Twin Cities, MN
164 posts, read 463,691 times
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Ask if the lender is willing to apply for FNMA's Project Eligibility Waiver (PEW) regarding the over 15% delinquency rate. You can find out more here: https://www.efanniemae.com/sf/refmaterials/approvedprojects/pdf/condoprojectreview.pdf (broken link)
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Old 06-13-2011, 06:19 AM
 
Location: MID ATLANTIC
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Payng down other delinquencies is definitely an option.

Ask to review the condo questionnaire. Foreclosures are not to be included in the delinquencies. Make sure this didn't happen. Ask if any of the delinquent units are for sale......and find out if any are under contract. All delinquencies must be brought current at the time of closing.
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Old 06-13-2011, 07:18 AM
 
2,060 posts, read 5,260,917 times
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Quote:
Originally Posted by SmartMoney View Post
Payng down other delinquencies is definitely an option.

Ask to review the condo questionnaire. Foreclosures are not to be included in the delinquencies. Make sure this didn't happen. Ask if any of the delinquent units are for sale......and find out if any are under contract. All delinquencies must be brought current at the time of closing.
We're 9 days away from closing on our FNMA property and discovered that they're 3 months behind on the HOA fees. Our attorney asked us today if we'd be willing to pay the delinquency in order to keep closing in time, is this normal (we're in IL btw)?
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Old 06-13-2011, 10:09 AM
 
4,567 posts, read 9,090,451 times
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Quote:
Originally Posted by chicagojlo View Post
is this normal?
In real estate, nothing is "normal" Every deal has unique problem and unique solutions.
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Old 06-13-2011, 07:44 PM
 
Location: MID ATLANTIC
8,140 posts, read 19,992,551 times
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Yes, we are seeing anybody and everybody paying down the delinquent fees......buyers, agents, short sale lenders.

You need to decide if you're getting a deal worth paying the additional fees, because without it, you aren't going to close.
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Old 06-14-2011, 04:47 PM
 
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It's only $500. I can live with it, I'd just rather not. They held me to the 'as-is' part of the contract, I should hold them to the 'all HOA fees paid current' part. But since I'm going to be hitting up the HOA with a laundry list of issues they need to take care of once we take ownership, I might as well keep them on side.
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Old 06-15-2011, 09:18 AM
 
65 posts, read 184,270 times
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Update: So after going back and forth with the HOA manager this week, look like things have worked out... I got a call from the manager today, he said he spoke to his boss regarding the delinquency issue, and ends up that the way the manager was adding up the numbers was wrong. He included homeowners who were just late on their payment since they had a 15 day grace period to send in payments. So we are actually now at 3/31 (9.6%) !!

Thanks everyone for their input.

Now just waiting on the appraisal...
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Old 06-15-2011, 04:08 PM
 
2,060 posts, read 5,260,917 times
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Yay!
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