HOA Foreclosure and the FHA Squeeze
A couple of informative condo related articles came out this week, which readers will find useful. (click titles to read the full article)
Dues and Don’ts: Condo owners who get behind on homeowner dues could be in for a nasty surprise | Seattle Met Magazine
…your condo association has the authority to foreclose on your unit if you simply fall behind on your monthly homeowner dues. “People always assume that the only person that can foreclose is the bank,” says Valerie Farris Oman, an associate attorney at the Condominium Law Group. “And that’s simply not true.”
New FHA condo financing rules squeeze sellers | Philadelphia Weekly / Inman News
All of the condo projects that ever received FHA approval were going to have to have those certifications expire as of Dec. 7, 2010, but there were so many projects seeking recertification that it created a crush on FHA’s resources to deal with it,” said Kevin Britt, a Seattle attorney specializing in condo and homeowners association representation.
“The FHA extended the deadline based on when the projects originally received approval. The earliest projects were circa 1972 and had to be recertified by Dec. 31, 2010; the other projects (using five-year increments) had longer deadlines
Condo owners and new buyers need to be aware of the fact that HOA’s have the power to foreclose if you get behind on your dues. We have had a tough couple of years getting condo financing on Pensacola Beach, but there are a few lenders who are now financing. FHA loans are so important in helping with our recovery. Thanks for the great information!
Some condo owners are completely unaware of this information because they were made to believe that the HOA fees were solely being paid for the maintenance of the building. It is always a good idea to inform anyone who is planning a condo to know that it is not only the banks that have the authority to foreclose on you.