Over the last couple of months we have had a couple situations you rarely see on condo pur­chase transactions.  On conventional loans (not FHA or VA) the lenders usually need a HOA Certification to verify information about the condo complex.  This information includes the number of rental units in the complex as opposed to owner occupied, any pending litigation, and the number of units that are delinquent on their HOA dues.  Recently this is becoming a problem as more and more units are bank owned or the current owners are not paying their dues.  If the percentage of units delinquent on the HOA dues is over 15% lenders will not fund the loan. 

How Does This Affect You ?

    This is another of those situations that does not happen often but when it does it is usually at the end of the transaction.  The HOA Certification is usually sent out by the escrow company to the management company responsible for the condo complex.  It is a good idea to make sure this document is sent out as early in the transaction as possible to avoid any last minute problems.