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Hi,
I applied for my mortgage loan about 40 days back. It was conditionally approved requesting few documents (mostly related to personal information), after providing all the documents the lender says the loan is denied since there is more than 15% of delinquent on condo dues.
They never stated this problem. Neither in conditionally approved document nor in the delay letter they provided earlier.
I wanted to know exactly when does a lender check the delinquency amount; isn't this something that needs to be verified before approving the loan conditionally. Isn't this something they need to mention in the conditionally approved letter or delay letter. Please advise.
Hi,
I applied for my mortgage loan about 40 days back. It was conditionally approved requesting few documents (mostly related to personal information), after providing all the documents the lender says the loan is denied since there is more than 15% of delinquent on condo dues.
They never stated this problem. Neither in conditionally approved document nor in the delay letter they provided earlier.
I wanted to know exactly when does a lender check the delinquency amount; isn't this something that needs to be verified before approving the loan conditionally. Isn't this something they need to mention in the conditionally approved letter or delay letter. Please advise.
Thanks
ALL FANNIE and FREDDIE conforming mortgages require condo to have less than a 15% delinquency rate.
You can still get a mortgage just not a conforming mortgage. This is public knowledge and usually condos that are on the FANNIE/FREDDIE eligibility list Realtor often will put it in the ad.
My condo building is not on the list, but no big deal. We have greater than 15%. People can get low rates on loans for building, only difference is banks have to keep it on the books. As such the bank that most people in building requires a minimum of 40% down. Most folks pay cash in my building. Last sale guy just did a deal where he closed cash and did 100K HELOC at same time. Effectively he bought a 255K place with 155K down and a 100K Heloc.
This is the most misinterpreted piece of data on the condo questionaire, I could teach a one hour class on how to manipulate the numbers - thats all they are, statistics.
First, find out if your lender is prepared to "get into the data" or are they just rolling over and saying okay? Here's a Reader' Digest of things to check out. What is the date of the data? Has it changed from when the numbers were prepared? (Some are as much as 45 - 60 days behind). Are they counting all past due or just 30 days past due? (Supposed to be just the latter). What happens if you repeat the questionnaire in one week? Are they including any bank REO (not supposed to). How much will it take to bring the delinquency to 14%? Is your seller willing to pay that? And, probably the 1st question I should have asked - how large (as in how many units) is this condo project? Only 3 units can take you out of play if you are in a 20 unit project.
Insist they look harder into the numbers or move your loan to someone that will. Your seller most likely will be agreeable - they need this fixed, too.
This is the most misinterpreted piece of data on the condo questionaire, I could teach a one hour class on how to manipulate the numbers - thats all they are, statistics.
First, find out if your lender is prepared to "get into the data" or are they just rolling over and saying okay? Here's a Reader' Digest of things to check out. What is the date of the data? Has it changed from when the numbers were prepared? (Some are as much as 45 - 60 days behind). Are they counting all past due or just 30 days past due? (Supposed to be just the latter). What happens if you repeat the questionnaire in one week? Are they including any bank REO (not supposed to). How much will it take to bring the delinquency to 14%? Is your seller willing to pay that? And, probably the 1st question I should have asked - how large (as in how many units) is this condo project? Only 3 units can take you out of play if you are in a 20 unit project.
Insist they look harder into the numbers or move your loan to someone that will. Your seller most likely will be agreeable - they need this fixed, too.
My condo only gives that info to owners. I would not provide any of that info to a bank. I personally do not want any mortgages in building with low down payments. I think Fannie/Freddie looks at 60 days plus.
We give out annual financial statements and owners on a monthly basis can visit the managing agent to review financials. Not our job to help non-owners get mortgages. And non-owners are not entitled to review our financials.
My condo only gives that info to owners. I would not provide any of that info to a bank. I personally do not want any mortgages in building with low down payments. I think Fannie/Freddie looks at 60 days plus.
We give out annual financial statements and owners on a monthly basis can visit the managing agent to review financials. Not our job to help non-owners get mortgages. And non-owners are not entitled to review our financials.
I do hope you are talking about condo ownership and not co-op ownership. Co-op ownership does not belong in this thread.
Wow I hope the owners vote out its current board of directors. Not assisting owners facilitate their sale only brings down the value of the condo project. They have erected a barracade that many potential buyers won't even give the time of day to work through. Refusing to complete condo questionnaire (which is considered part of the resale process) is only shooting themselves in the foot. Ask any agent here, if you make it difficult for their buyers to buy, listings in your condo project will be given wide berth, driving down your values.
My condo only gives that info to owners. I would not provide any of that info to a bank. I personally do not want any mortgages in building with low down payments. I think Fannie/Freddie looks at 60 days plus.
We give out annual financial statements and owners on a monthly basis can visit the managing agent to review financials. Not our job to help non-owners get mortgages. And non-owners are not entitled to review our financials.
Even lenders of large down payment loans are going to be requesting info related to association health. In Florida buyers are entitled to full docs including most recent year-end financials before closing. Your board members could be personally liable if trying to obstruct the process.
I do hope you are talking about condo ownership and not co-op ownership. Co-op ownership does not belong in this thread.
Wow I hope the owners vote out its current board of directors. Not assisting owners facilitate their sale only brings down the value of the condo project. They have erected a barracade that many potential buyers won't even give the time of day to work through. Refusing to complete condo questionnaire (which is considered part of the resale process) is only shooting themselves in the foot. Ask any agent here, if you make it difficult for their buyers to buy, listings in your condo project will be given wide berth, driving down your values.
Buyers Buy - Borrowers Borrow. Legally, and in our offering plan ONLY condo owners have a legal right to access information.
Plus we are at 20% arrears and are recovering from a financial crisis and have told all unit owners we are a cash only building. I will give Realtor or Owner the offering plan, the latest audited financials and proof of arrears related to unit they are purchasing. It is up to buyer to make a decision.
My building has ZERO barriers. We sold four units recently all cash. We sold to actual experienced buyers. Buyers who can read financials and make a decision and write a check and move in. We have a closing Monday, no inspection to boot.
The new folks with skin in the game paying cash have been joining board and getting actively involved. We have a large board. 20% of building is on the board. And folks on board represent!!!
Even lenders of large down payment loans are going to be requesting info related to association health. In Florida buyers are entitled to full docs including most recent year-end financials before closing. Your board members could be personally liable if trying to obstruct the process.
If it was a good buyer we could jump through hoops. We always give the financial info. Last "mortgage" in building in last few years was not a mortgage at all. It was not from a bank.
Other weird part of my building is 33.33 percent of building is unmortgageable to begin with. We have basement condos in a flood zone. Yep 100% of unit below ground. Catch 22 is lender wants flood insurance but you really cant get proper flood insurance and it is expensive. No lower level unit has sold in 12 years. Banks cant figure out comps and in grieving taxes on building the assessor struggled. After Sandy the town let them sit gutted for several weeks before issuing a CO to rebuild. I know him and he actually regrets it as he is worried next flood if someone gets hurt he town may be liable. Without a co they are basement storage for building. Good luck getting a mortgage.
Banks gave mortgages on those units up till around 2007 when folks were refinancing them. Now the folks who bought or refinanced since 2002 are really regreting their decision. They rent for 2k a month and most have rented them and moved on. But next flood who knows.
Remember, a condo association first responsiblity is to ensure the building survives. Long term try to increase values, long term get RE taxes down. Short term fixes are not the answer.
Right now long term if all the lowers left, we get taxes significantly reduced, we have a few years worth of low resales to support our tax grievances the building will thrive in 5-7 years and be guarantted another long run.
I lived in a coop from 1991 to 1999 and we had a financial crisis and we took lumps on assessments, tax grievances, major capital imporvements, foreclosures and everytihing was done for long term not short term.
The building took unit prices from 110K down to 40K back up to 280K. Hard medicine for folks who bailed.But that building is know as the best managed building in that town now.
Think twice before buying in a condo or coop.
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