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Has anyone had issues with HOA refusing to fill out lender questionnaires?
I am trying to refinance, and the lender just sent me a questionnaire , the HOA flat out refused to fill out the form, citing legal complication of certifying much of the information being asked for/ OR not being privy to the information..
Has anyone run into this? How much of an issue could this be to the refinance?
That is weird and not normal. Either there are unusual questions or the HOA has more information about something being wrong. I would call the HOA yourself and ask them how they prefer to deal with people refinancing, are there some questions they are uncomfortable with and what would they recommend you do.
Are the questions different than those when you financed?
Are they asking if anything is new?
How did you purchase...the settlement office would have written the HOA management to get proof that the fees were paid up to date by the seller. Has the manager changed since then?
I wonder if the manager even knows how many are owner occupied. Is it possible for the manager to know that for sure? Some lenders have a limit they allow for number of units tenant occupied. They like mostly owner occupied.
I don't know if he'd know how many people have a business from their home. Is that the question asked....about businesses in condos that are homes? If so, these days who even knows about that.
How is the lender...it the lender a reputable company?
Location: Sarasota/ Bradenton - University Pkwy area
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Here in FL I have run into associations refusing to complete lender questionnaires for financing. FL statutes state the Boards are not obligated to complete these forms when requested. I think many Boards have concerns that they might face legal problems if they inadvertently answer a question incorrectly and the homeowner's or buyer's loan is denied by their lender. I've looked at the Fannie Mae Questionnaire before, there are a couple of questions I would not answer either if I were a Board member.
This is a condo, right? Have you requested they complete the form IN WRITING, or did you just call them? You need to do it in writing.
But, I'd be wondering why they are making such a big deal of it. Maybe the HOA is having some kind of litigation issue? If so, you will probably be declined. Do they have significant unpaid HOA fees? If so, you will probably be declined.
If you're trying to do an FHA refi, there may be some issues with getting the refi if the building is not FHA approved.
Are they asking for a fee to complete the questionnaire? That's not uncommon (typically $75-$100)
You'll have to find your local laws to see if this is allowed or not.
Have you contacted the Board members about this? IN WRITING?
Has anyone had issues with HOA refusing to fill out lender questionnaires?
I am trying to refinance, and the lender just sent me a questionnaire , the HOA flat out refused to fill out the form, citing legal complication of certifying much of the information being asked for/ OR not being privy to the information..
Has anyone run into this? How much of an issue could this be to the refinance?
I agree, you need to call the HOA... My guess is that the HOA wants to charge a fee to complete the form and the lender isn't willing to pay for it.
We have over 300 homes in our Neighborhood. It would be an absolute pain in the apples if I had to fill out this form for my HOA everytime an owner refinanced/bought. I wouldnt do it either. Its just the bank trying to get a warm and fuzzy about the community.
I filed that form out for someone in my condo who was a nice person and personally I know is pretty honest. But I had to guess at some questions. I for instance don't do bed checks. So I guessed on percentage of rentals. Tenant vs owner occupied.
For instance,
I rent my unit in off season and use it in peak season.
A neighbor uses her unit 11 months a year but rents it one peak month to help pay bills.
One owner has a room-mate.
One owner his grown son moved in with him.
One owner shacked up with his girlfriend not on the lease.
One owner is in a nursing home and it is rented I think to a nephew.
On the above what is tenant vs. owner occupied? Hard to tell.
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