03/13/2015
Amending condo docs for FHA approvals -
Every year condo questionnaires get longer and longer while the rules for condominium financing become more comprehensive, limiting, and confusing. That being the case all condominiums across the country are struggling to stay in compliance with governmental agencies like HUD-FHA and Fannie Mae.
The solution is a proactive amendment to address lending once and for all. The amendment should allow board members the right to alter condominium documents, only to stay in compliance with lending regulations, with a majority vote by the board members. When a future alteration to the condominium documents is needed for lending purposes the board then votes to stay in compliance or not and an amendment can be created, passed, and recorded immediately. This will expedite the amendment process without a 2/3 association majority vote. The alternative is years of never ending amendments with spotty mortgage availability for condominium associations.
Amendments are a major undertaking and cause prolonged frustration as lending can be halted while the amendment and approval process takes place. A proactive amendment will simplify and streamline any condominium association’s amendment approval process, deal with future issues proactively, and maintain consistent availability of mortgages to the entire association.
For any property currently amending the condominium documents I suggest additional language be added to that amendment stating that moving forward the board, by a majority vote, can amend the condominium documents to stay in compliance with mortgage and governmental lending regulations from HUD, Fannie Mae, VA, etc.
Please let me know if I can help with an FHA or VA condominium approval. [email protected]
