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Florida Condo & HOA Legal Blog News & Updates on Condo & HOA Laws & Legislation in the State of Florida

Category Archives: Mortgages

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Reverse Mortgages and Unpaid Assessments in Florida Condominiums

Posted in Assessment Collection, Mortgages, Reader Q&A

Question:  I serve on the board of my condominium association and one of the issues we have been hearing a lot about recently are “reverse mortgages.”  Are there any specific concerns a condominium association should have with owners taking out such mortgages and does the association’s rights regarding unpaid assessments differ when a unit is… Continue Reading

Are Loan To Value Requirements Legal?

Posted in Mortgages, Reader Q&A

Question: I am a realtor and I have been working in the real estate industry for many years. I have a potential buyer who learned about a new resolution passed by a homeowners’ association requiring a minimum of 15% down on all loans. I don’t do many deals that require financing and I have never… Continue Reading

Condo Owners Troubled by Rejected Mortgages

Posted in Mortgages, Uncategorized

Marketwatch published a story this morning that rings true for so many condominium owners that want to sell their units as well as those would-be condominium buyers.  The author, AnnaMaria Andriotis, aptly pointed out that “lenders can make condo buyers with pristine credit feel like rejects”. We’ve talked about limited financing options over the past… Continue Reading

FHA Announces New Procedures to Account for Condos & HOAs

Posted in Assessment Collection, Foreclosures, Mortgages

FHA issued a new Mortgagee Letter last week.  It requires foreclosing lenders to recognize and communicate with a community association, especially if the association already liened the property. Condominium and Homeowners’ Association leaders often complain about lack of payment on the part of mortgagees that take title as a result of the foreclosure.  Many of them are not willing to wait… Continue Reading

Relief for Underwater Homeowners – HARP Modifications

Posted in Mortgages

FHFA, Fannie Mae and Freddie Mac Announced Changes to the Home Affordable Refinance Program (HARP) to Help Borrowers that Owe More Than the Fair Market Value of the Home.  Refinancing is practically impossible if you owe more than the current fair market value of the property.  You either need enough cash to absorb the difference or you need to qualify for one of the relief… Continue Reading

Mortgage Options: Sharp Increase In Use of FHA Backed Financing

Posted in Assessment Collection, Mortgages, Operations

Over 40% of the Home Loans Issued in Two Major Florida Cities in February are Government-Insured FHA Loans. The marketability of the homes in your community is highly dependent upon the availability of mortgage financing.  We’ve included several posts on this site regarding purchase money financing issues over the past 2 years, including reporting on the changes to federal underwriting guidelines. Since mortgage… Continue Reading

Shouldn’t the Public Have Input Regarding FHA Insurance & Underwriting Guidelines?

Posted in Mortgages

Community Association’s Institute (CAI) is petitioning Congress to host oversight hearings examining the Federal Housing Administration (FHA) and its management of the FHA condominium insurance program in an effort to highlight many of the problems faced by condominium associations across the country. The Federal Housing Administration (FHA), which is part of the Department of Housing and… Continue Reading

FHA Extends Approval Procedures – New Mortgagee Letter Issued

Posted in Mortgages

The Federal Housing Administration (FHA) implemented a new approval process for condominium projects and insurance requirements for mortgages on individual units in November, 2009.  FHA also announced certain exceptions to its standard criteria.  Please note the following: The November 2009 guidelines temporarily increased the number of permitted FHA insured loans in a particular project from 30% to 50%.  100%… Continue Reading

Expiration of FHA/Fannie Mae Approvals: Will Your Condominium Units Qualify for Mortgage Financing?

Posted in Mortgages

The United States Department of Housing and Urban Development (“HUD”) announced recertification deadlines for condominium projects that had received approval for FHA-backed mortgage insurance prior to October 1, 2008.     Initial Project Approval Dates Expiration Date 1972 – 1980  December 31, 2010 1981 – 1985   December 31, 2010 1986 – 1990  May 31, 2011 1991 – 1995 July… Continue Reading

Does Your Condo/HOA Charge a Fee in Connection With a Sale or Transfer?

Posted in Mortgages

If so you need to become aware of the Federal Housing Finance Agency’s plan to prohibit Fannie Mae, Freddie Mac and other Federal Home Loan Banks from purchasing mortgages for properties in communities where the covenants contain transfer fees. If you read the newspapers (or watch news on the internet) you already know that mortgage rates… Continue Reading

Fannie Mae, Freddie Mac & Community Associations – The Uncertain Future

Posted in Mortgages

A housing conference is taking place today in Washington, D.C., where industry leaders and government officials are discussing the future (if any) of Fannie Mae, Freddie Mac and other Government Sponsored Enterprises (GSE) that offer mortgages. These entities (Fannie, Freddie, etc.) are backed by the U.S. government.  Government backing lowers lending costs which translates to lower… Continue Reading

Collection Efforts After Bank Foreclosures – The New Association Paradigm

Posted in Assessment Collection, Foreclosures, Mortgages

Is your Association Leaving Money on the Table?   Bank foreclosures continue to be an impediment to collection of unpaid assessments in many communities.  Sure, after the 2010 legislation became effective, community associations are entitled to collect either 1% of the original mortgage debt or 12 months worth of assessments from the mortgagee (whichever is less), but what… Continue Reading

NFIP: National Flood Insurance Program Lapses

Posted in Insurance, Legislation, Mortgages

On March 2, 2010, Congress passed and the President signed H.R. 4691, which extended the National Flood Insurance Program (NFIP) through March 28, 2010.  Homeowners (including community associations) who have current flood insurance policies still have coverage; but NFIP cannot issue new policies, increase coverage on existing policies or issue renewal policies.  Since the extension expired, please refer to… Continue Reading

Fannie Mae Announces Special Program to Support Florida Condo Sales

Posted in Assessment Collection, Mortgages, Operations

Fannie Mae will Evaluate Whether Hundreds of Condominiums Throughout the State of Florida Qualify for Financing Despite Published Guidelines. It has been harder and harder to obtain loans to purchase condominiums in the past two years.  Fannie Mae, Freddie Mac and FHA all published eligibility guidelines basically precluding borrowers from obtaining favorable loans to purchase… Continue Reading

FHA Approval Huge Factor in Marketability of Units

Posted in Insurance, Mortgages

HUD Implements New Approval Process for Condominium Projects to Qualify for FHA Insured Mortgages.
Website Allows Users to Search for FHA Approved Projects.
On June 12th the Department of Housing and Urban Development (HUD) published Mortgagee Letter 2009-19 announcing the new process for approval of condominium projects. As previously reported on this Blog, Fannie Mae, a federally backed lender, announced several changes to its standards, including the imposition of PERS review.

Bank Foreclosures Devastate Community Associations

Posted in Assessment Collection, Foreclosures, Mortgages

A survey conducted by Community Association Leadership Lobby (CALL) confirms problems with community operations and lack of maintenance as a result of foreclosures. Averaged out, over 100 people per day responded to the 2nd Annual Foreclosure Survey conducted by the Community Association Leadership Lobby (CALL). Over ninety (90%) percent of them say first mortgagees should… Continue Reading