FHA Condo Approval Specialist – Two New Mortgagee Letters

By
Services for Real Estate Pros 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 Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted more than 100 condominiums and we can help your association.

 

ReadySetLoan is an active member of the Connecticut chapter of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.

 

Please contact us with any questions regarding FHA or VA 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/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

eric.boucher@readysetloan.com
ready set loan condo team

 

 CAI-CT logo

 Check out our article in Common Interest magazine on page 19!

Find Eric Boucher with ReadySetLoan Condo Team on Google+

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Connecticut Professionals
New England Professionals
MA REALTORS
Realtors®
New Hampshire - Real Estate and Life in The Granite State!
Tags:
hud condominium approvals
fha condominium approvals
mortgagee letter ml 1212
hud mortgagee letter ml 1211

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tshirt to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,848,885
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the post. I will bookmark it.

June 27, 2012 03:58 AM #1
Rainmaker
529,391
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

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

June 27, 2012 04:20 AM #2
Rainmaker
891,836
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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 #3
Rainmaker
452,366
Ritu Desai
Samson Properties - Ashburn, VA
Northern Virginia Realtor - Fairfax/Loudoun/PW - 7

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 #4
Rainer
131,124
Laura Murray
Weichert - Silver Spring, MD
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com

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 #5
Rainmaker
873,875
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

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 #6
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
264,297

Eric Boucher

The FHA/VA Condo Project Approval Guy
Contact me for a FREE Prequalification of your Condo Project
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the car to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information