FHA Condo Recertification Due December 7, 2010

With the many changes in the mortgage industry, it is hard to keep up with what deadlines are coming up next.

On December 7, 2010, the FHA condo recertification process must be completed by each individual condominium complex in order to be eligible for homebuyers to receive FHA financing in their building.

There is an application and process that must be completed in full for the building’s recertification to have the opportunity to be approved. Thank you to Dan Plunkett, of Prosperity Mortgage, a part of the Wells Fargo Home Mortgage company for sharing the two forms they must use to submit for approval.

One is the FHA New Condo Approval Process for condos that have never been approved for FHA financing in the past. These would usually be newly built units.

The other is the FHA Recertification Project Submission Form for developments that were approved before and need to go through the certification process again, which would be most condominiums.

The good news for most Timonium condo owners, most of the ones in the area have already been recertified. I wrote about the updated Timonium condo approvals in August, and even more have been added to the HUD site since.

During these confusing times, it is best to have an agent and a mortgage specialist who understand the muddy waters. Contact me if you are considering selling or buying a Timonium condo. My team of professionals can help!

*Since writing this, HUD & FHA have extended the FHA condo recertification deadlines. Here is more information about the FHA condo recertification deadline extensions.*

Timonium Condo FHA Approval

At the end of 2009, HUD changed its’ condo approval process for FHA condo financing.

No longer can a community be given a “spot” approval when a unit goes under contract if a buyer desires to use FHA financing.

Condominium developments must be approved in advance of an FHA sale and the approval is only for a certain amount of time.

Many Timonium condo buildings have been approved already.

Luckily HUD has set up a website to check whether a condo development has been HRAP or DELRAP approved.

I entered the Timonium zip code 21093 to see all approved units. You can do this for any zip code if you are unsure of the condo development’s name!

Contact me if you are considering selling or buying a Timonium condo. I can help you navigate these tough waters!

Towson is CNNMoney’s #14 Top Affluent Singles City

Towson was named CNNMoney.com’s #14 Top Affluent Singles City!

CNNMoney.com named the top 25 cities for highest income per single households, and Towson, MD was #14 in their list.

This is due to the median family income of $102,302, and the 35.4% rate of singles versus married households. Many Towson professors at the nearby Towson University and Goucher College live close to the schools.

Towson Feet on the Street is noted as a big plus for singles living in Towson, as well as the restaurants and bars along Allegheny Avenue.

If you are considering living in Towson, contact me today!

Towson Condominium Real Estate : New FHA Condo Guidelines Effective November 2, 2009 May Harm Towson Condo Owners

Towson Condo Owners have a new issue to grapple with.

First there was the change in the laws for condo insurance converage. Now we have the new FHA condo guidelines that may affect many people who want to buy or sell a Towson condo!

HUD announced this change in July, and the new guidelines were to take place October 1, but on September 15 they extended it per this note on their website: “This new approval process was effective for all case numbers assigned on or after October 1, 2009. However, the new effective date is for case numbers assigned on or after November 2, 2009“. This allows more time for buildings and mortgagees to be prepared for these changes. Here is the mortgagee letter from HUD, under “Notice on FHA Condomimium Processing” explaining the changes.

The biggest issue is that EVERY condo development in the United States will have to go through this process to be re-qualified to have FHA loans allowed in their building. Imagine the hold up/back up this is likely to create.

A major change in the guidelines that could ALSO create a delay is the elimination of the “Spot Loan Approval” process.  HUD states the reason for this is that “DELRAP and HRAP processes have been streamlined to allow for uncomplicated condominium project approvals eliminating the need to approve units on a “spot loan” basis.”

Unfortunately, this new process could add a decent amount of time to approving a condo project because much more paperwork has to be submitted to the bank, reviewed, and then submitted onto HUD.

Add onto that the many people wanting to take advantage of the $8,000 First Time Homebuyer Tax Credit that is set to expire at the end of November, and you have a recipe for a huge disaster looming in the near future!

SO, if you have been considering buying a condo in Towson or selling one, the time to do so is NOW. Luckily with this extension, we have a little more time to GET IT SOLD!

Towson Condo Owners Need to Be Aware of New Law

Beginning June 1, 2009, Maryland Law HB287, approved by the Governor May 19, went into effect. The bill discusses Real Property Condominiums — Damage and Destruction. Here is a copy of the bill .

What this means for the Towson condo owner is that before this bill, condominium associations, for the most part, were responsible for structural repairs and maintenance to common areas and units, while individual unit owners were only responsible for personal property in their own units. (Some condo association policies were not this way to begin with, so this new bill will not affect you if the general insurance policy in your community did not cover this before).

The new bill states that the associations are required to maintain insurance ONLY on the common areas and not on individual units. In addition, any damage to common areas originating from YOUR unit would have YOU responsible to pay up to$5,000, the maximum deductible allowed on the insurance policy of the association.

Also, to be clear, you as a unit owner, are responsible for damage caused by your unit to other units. For example, if you live on the third floor of your Towson condo building, and you have a leak from your shower that flows down through the second floor unit down to the first, YOU, as owner of the unit where the issue originated, would be responsible to the repairs to the OTHER units as well.

Here is a summary of the bill from State Surge, a great site where you can read & review laws enacted by your local government.

The best course of action for Towson condo owners (and for ALL Maryland condo owners), is to call your insurance agent right away to find out what your personal insurance policy is, and ensure you have complete coverage so that in the event of a problem, your insurance may pay that $5,000 deductible — instead of YOU personally!