HOA not responding to "HOA questioner" to my loan officer"

Started by GaryD3 • 7 replies • 2069 views

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GaryD3 (California)
Posts: 4

Posted:

Hello,
I am a buyer and in escrow for 12 days and my contingency on the loan is going to expire in 4 days. I know i can get extension from the seller but why drag it.Help I need from Forum is that HOA Is not responding to my loan officer to complete a required documents "Condo Questioner" so we can proceed with our purchase. Agent is requesting, No response,Loan officer is requesting,No response,buyer is requesting again,No response.
I understand this is a real estate issue,but I am searching an advise, how to approach to this matter.
Gary.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Sounds like they aren't sending the paperwork to the right people. The President of the Association (or assigned representer of) is supposed to sign that paperwork. I know because I used to do it. The mortgage company usually called a few days prior to closing for me to come down to fill out the documentation. It's only for certain loan types like FHA etc...NOT all loans need this paper filled out.

I would ask the seller for the proper information on who is in charge of the HOA. Who is the management company so they can forward the message to the President or assigned HOA representative. It may not have to be the President but atleast a BOD member/president assigned person. I don't think the management company can fill it out but that would have to be discussed amongst the mortgage company and them. It depends if it is management company controlled or HOA.

Sounds like someone needs to do some Point of contact digging... May I also suggest going to your courthouse records department and start reviewing your CC&R's while you wait? It's best to start getting informed about that HOA before you buy...

Former HOA President

GaryD3 (California)
Posts: 4

Posted:

We are sending to the right place.HO President and Vice President.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Gary:

The seller who is a member of the HOA could send a "Certified Return Receipt" letter to the board again requesting the documentation needed and a nudge on whether they have considered possibly they may have any liability if looses the negotiated sale because of HOA not taking proper care of business.

Have you done due dilligence and checked out the HOA? Make sure they are taking proper care of all HOA business and of the common property before you sign on the line. This will include as Melissa stated thoroughly reading the CCR to make sure you can abide by all the rules and regulations.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

HOA's are run by volunteers. The President/Vice-President may or may not be aware of the importance of this documentation. Especially if they are new to the BOD. The mortgage company actually called me and arranged a time for me to come in to sign the paperwor. There are about 25 questions on it. It regards the property if it is "Fee simple" and how much rental is on the property etc. Just a quick gauge of the condition of the HOA financially without revealing actual financials. So it isn't just a simple "sign-by" form.

I'd recommend a follow up phone call.

Former HOA President

GaryD3 (California)
Posts: 4

Posted:

HOA Vice President is a Real Estate Agent her self,she should know importance of this form.
Leander can't approve the conventional or FHA loan to the buyer without "Condo Questioner".

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Well then, this puts some red flags up for me. There are two reasons why they may not be filling the form out. 1. The innoncent reasons of out of town, don't know the answers, or didn't get a copy. 2. They have some serious rental/financial issues they are working through.

This form is important beyond your loan. It applies to many other loan programs and can effect the offering of those type loans. This means the mortgage company/buyers will have limits on the type of loans available to purchase properties. This means no more FHA, Fannie Mae/Freddie Mac type loans. The buyers may have to go with more expensive options of large downpayments etc...

Check out the foreclosure ratio of this neighborhood too. Should have been checked out on the appraisal of the property. Something is telling me there is a possible high foreclosure/rental situation going on. Could also be a lawsuit or some big expense. Either way you need to do some research on what is the status of this HOA before you go any farther.

Former HOA President

JonD1
Posts: 2,350

Posted:

Gary:

How long ago did to submit this paperwork?

Does the property employ the services of an MC?

If so have you provided them with a request?

Did you send this paperwork certified mail? Was it in fact delivered or signed for?

How many units make up the property?

Is there a large number of sales or foreclosures taking place on the property?

Has the seller made any effort to assist you?

In our case this request would be handled by our MC. The President or VP would have no role in the process.
If there is an MC in place I would contact them directly if not I would ask the seller to provide some assistance in making contact with the board to obtain this information.

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