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.

I am dedicated to helping condominium projects across the nation to gain their HUD approvals or become recertified with HUD.  I can help your project.

Please contact me with any questions regarding HUD/FHA condominium approvals.  You can email me at eric@integratedpros.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
eric@integratedpros.com

 

 
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6 Comments on FHA Condo Approval Specialist – Two New Mortgagee Letters

JUN
27
1,454,324 Points 46 Featured Posts Outside Blog Called Shot Master

Thank you for the post. I will bookmark it.
3:58am • #1
433,256 Points 10 Featured Posts Outside Blog

Eric, this is very important information. Like Gita above, I have bookmarked your post today.
4:20am • #2
731,093 Points 15 Featured Posts Outside Blog Called Shot Master

Eric, glad to see you are on top of the information in these letters. Thanks for bringing us up to date.
5:49am • #3
345,610 Points 5 Featured Posts Called Shot Master

Eric, thanks for sharing the information. It is a good news for the condo buyers that they can get the condo FHA approved.
5:50am • #4
127,487 Points 1 Featured Post

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.
9:16am • #5
JUN
28
496,487 Points 29 Featured Posts Outside Blog Called Shot Master

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.
4:33am • #6


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Eric Boucher - The FHA Condo Approval Guy

Manchester, CT

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Integrated Processing Solutions

Address: 110 Main Street, Manchester, CT, 06042

Cell Phone: (404) 433-4565

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