fha certification

Started by KimP3 • 7 replies • 1712 views

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KimP3 (New York)
Posts: 2

Posted:

I am currently selling my condo, in new york, my board allowed our fha certification to expire. My buyer who is an attny, for free did the recertification only for it to come back denied. I currently hold an FHA mortgage, we were certified when I bought, since our certification is expired can my buyer still assume my fha mortgage without the fha certification currently not up to date? also is my board required in New york to advise us of theexpiration of our FHA certification? also arent we supposed to receive some type of statement as far as our assets etc? I have rec'd none on both!

TimB4 (Tennessee)
Posts: 21,062

Posted:

Kim,

I suspect that it will be the note holders (bank, mortgage company, etc.) decision if the buyer can assume the mortgage irregardless of an FHA certification.

KimP3 (New York)
Posts: 2

Posted:

Thank you, would you mean my current, mortgage holde bank of america, or the purchasers bank holder wells fargo?

TimB4 (Tennessee)
Posts: 21,062

Posted:

If two banks are involved perhaps I'm unclear on the process of "assuming the mortgage" fully entails.

Jon from NY is fairly knowledgeable in this area. Hopefully he will post.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

It sounds like worst case it just won't be a FHA type loan. There are other type loan packages out there beside FHA. Freddie Mac or Fannie Mae are getting more popular options. There are others beyond that. Many HOA's lose their FHA certification because of the large number of rentals or financial situation. It just means that FHA loans aren't offered in that area.

I used to be Bank of America and NOT a fan of them. Take what they say with a grain of sand...I'd recommend shopping around a bit more for another loan/bank. The interest rates are so low right now that it really not much difference between many loans. Who knows the person may be able to refinance into a FHA loan in the future.

Former HOA President

JonD1
Posts: 2,350

Posted:

Seems this is yet another situation where government agencies step in an complicate the process. Seems to certify has become MORE difficult if not impossible.

What I have seen it his includes loan applications with private lenders too. They make repeated requests for more and more documentation and then find something lacking which gives them grounds to deny the loan.

If you have an FHA laon now and would like to find out if the buyer could assume that mortgage I would suggest you contact them directly.

The article linked below explains some of the issues and problems for Boards and properties in being certified wih the FHA and many other lending institutions.

http://articles.latimes.com/2011/oct/23/business/la-fi-harney-20111023

Good luck.

MikeS1
Posts: 521

Posted:

Kim, We just went through this last year. Sounds very familiar - Our property manager tried to do this on her own, when we now know that this is a job for the professionals (and not just any attorney). When I say professionals, I mean specialist! There are just a few companies out there that specialize in this. What's worse is... if you try this on your own (first), it usually makes it more difficult. It's like working on your own car and then taking it to the dealer in order to let them fix your car. We're very satisfied with this company out of California (everyone knows them). Essentially, if the COA can pass muster on 7 or 8 vetting questions, there's a good chance that you can get recertified. If this company submits your application and you do not get approved, you don't pay anything.

Since FHA is a huge part of the market, (and you were previously approved when you bought), it's essentially irresponsible on the part of the Board to have let this go and not have re-applied by now.

There is a ton of info on this subject within this site. Good luke - Go with a professional is my advice to you at this point.
http://www.hoatalk.com/Forum/tabid/55/view/topic/forumid/1/postid/127519/Default.aspx

JeanneK3 (Maryland)
Posts: 562

Posted:

Kim:
New regulations have made the FHA certification of condos much more difficult. It used to be that each unit was certified; now the entire condo association must be certified. All sorts of documentation is required one of which is if the condo association has more than 15% of the units in arrears, you can't get certification. It is the board's responsibility, not yours, to get certification.
Jeanne

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