FHA Condo Approval Specialist – Two New Mortgagee Letters

By
Contractor with ReadySetLoan Condo Team LLC

FHA Condo Approval Specialist – Two New Mortgagee Letters

 

HUD released two new Mortgagee Letters last week.

 

The first of these updates lenders regarding HUD’s policies regarding unpaid taxes and fees for foreclosed properties prior to conveyance to HUD.  You can read it in its entirety but here is the gist of the sections:

 

·        Mortgagees (lenders) must pay all taxes prior to conveyance to HUD.  It also spells out the requirements to maintain copies of the receipts and invoices for all taxes paid prior to conveyance.  If the lender does not pay the taxes on time, HUD ruled that it is not responsible for reimbursing the lender for any late fees or penalties.  Repeat offenders will be referred to the Office of Lender Activities

·        Mortgagees must pay HOA fees prior to conveyance.  This section outlines the necessary steps for the foreclosure process when the property is a condominium and what to do if the HOA fees survive the foreclosure process.  HUD reimburses lenders 100% of the fees paid to the HOA, which also include late fees and other penalties imposed by the HOA on the mortgagor.

·        Mortgagees must pay all unpaid water, sewer and other assessments.  It is the lender’s responsibility to research and pay any and all outstanding water, sewer or other assessments on the property prior to conveyance to HUD.

·        Mortgagees to provide title evidence for manufactured homes.  It must ensure that the home is attached to the land on the title, that the home is classified and taxes as real estate and that the manufactured home’s title has not been surrendered or purged (in accordance with local jurisdiction).

 

Mortgagee Letter ML 12-12 simply states that the lenders must adhere to local and State laws while in possession of the repossessed properties.

Posted by

The FHA Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their FHA approvals or become recertified with FHA.  We can help your project.

  

Please contact us with any questions regarding FHA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.

 


FHA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

eric.boucher@readysetloan.com

 

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 Check out my article in the latest issue of Common Interest magazine on page 19!

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Rainmaker
521,047
David Burrows
No Pressure, Just Seriously Devoted to Real Estate
Classic Realty

Eric, this is very important information. Like Gita above, I have bookmarked your post today.

June 27, 2012 04:20 AM
Rainmaker
865,576
Michael Setunsky
Your Commercial Real Estate Link to Northern VA
Michael's Commercial LLC

Eric, glad to see you are on top of the information in these letters. Thanks for bringing us up to date.

June 27, 2012 05:49 AM
Rainmaker
430,344
Ritu Desai
Northern Virginia Realtor - Fairfax/Loudoun/PW - 7
Samson Properties

Eric, thanks for sharing the information. It is a good news for the condo buyers that they can get the condo FHA approved.

June 27, 2012 05:50 AM
Rainer
130,312
Laura Murray
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com
Weichert

Right now I believe that condos are a great deal for investors with some very big caveats.  Condos come with numerous shared expenses - i.e. new elevator, new roof - etc.  these can quickly tap cash-flow.  And you are in a "financial bed " with lots of other folks , e.i. other owners, board, etc.  those other folks may not always make the same prudent financial decisions as you.

June 27, 2012 09:16 AM
Rainmaker
782,223
Joe Petrowsky
Your Mortgage Consultant for Life
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709

There are a number of very positive things happening with condominiums and it is about time. Their values have been a drag on the real estate market.

June 28, 2012 04:33 AM
Anonymous
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Rainmaker
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Eric Boucher

The FHA Condo Approval Guy
Contact me for a FREE FHA Prequalification of your Condo Project
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