Human Nature and FHA Loans- Now's THERE's an Interesting Topic!

Real Estate Agent with Baird & Warner

My modest little home is a townhome in a complex of 36 neighbors who ALWAYS see eye to eye, NEVER disagree about anything, and ALWAYS have the right answers to any challenge that comes along. (and yes, I have a bridge to sell you.)

The most recent situation in which our homeowner association leadership had the right answer (no need to investigate, because the answer is obvious, right??) was this: what does our community of 36 owners need to do to become FHA approved for mortgage lending?

In brief, considerable time and effort was expended to begin a certification process for FHA mortgage approval, much gnashing of teeth, pulling out of hair, and frustration with some homeowners who seemed uncooperative in supplying some documentation that was deemed necessary to the certification process.

Final Answer - I inquired with my brokerage company's finance arm, with my question going right to the top of the organization. The answer came back immediately and without hesitation: our townhouse properties are already eligible for FHA financing, no certification process is required (which at the least saved us $1000 in fees to have an FHA certification done).

The group think had taken over, assuming the road to FHA eligibility would be difficult. And within one day it became a non-issue. My point is this; I think it's important to constantly challenge the assumptions that we sell ourselves, or that other people make and expect us to follow along in lockstep.

This lesson I recently learned is not limited to FHA financing, of course. It's ANYTHING. I try to remind myself to challenge the group think, to ask why something that is a tradition is the best way to do a task. You get my drift.

Here's my challenge to other AR friends - what have you learned is not so wise about conventional wisdom in your real estate work? A fun way to start the new week. Thanks for sharing your own stories, in advance.

Comments (2)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Here in South Orange County CA most of the condo projects were not origionally approved by FHA.  It is a problem.

Apr 17, 2011 06:28 PM
Karen Hawkins, MBA - Langley & Surrey, BC
Royal Pro Real Estate Network - Langley, BC

Interesting post, Susan, I think that we should always check (if not outright challenge) each step in a process - without doing that we would continue to just do things "because that's the way they've always been done"...and that stops progress in its tracks!

Jan 19, 2012 04:40 PM