Last week I received an email from someone who wanted to know if there is a list of HUD approved condos that she could look over. I directed her to HUDS site that is updated when condo sites are approved, searchable by state, city or zip code.
This morning I had some free time to read and decided to more thoroughly delve in to the FAQs that are posted by HUD regarding all the new guidelines that must be met in order for a buyer to purchase a condo with a FHA mortgage.
I have to tell you, while scrolling through one of the FAQs I was outraged to read the following (question #25 in the above linked FAQ):
A HUD owned REO does not need project approval.
How's this for a scenario?: 2 condos are for sale in Mystic Village (made up name). One of them is owned by HUD, the other is owned by Mr. Jones.
The HUD owned property can accept an offer by a FHA buyer and smoothly sail to closing.
Mr. Jones cannot sell his condo to an FHA buyer unless his complex receives approval.
Excuse my language for a moment please...but how in the hell can this type of double standard be
allowed to happen???