Our Ohio condo association has a foreclosed unit that sold at auction on 2/21. The bank was the buyer. We initiated billing for condo association fees and they made one payment, but it was short of the amount owed. The bank then transfered control to Fannie Mae. A Fannie Mae representative contacted us for billing info and told us we would receive timely payments every month effective 4/23. We provided the data and they forwarded it to their agent, which turns out to be the bank that was initially in control.
We have still not received any other payments and it is currently 3 months behind. The property was listed and has sold. We don’t know a closing date yet. We are concerned that once the new buyer closes we will never see our past monies from the bank or Fannie Mae. Can we do anything to bind the closing pending full payment of the monies owed to us. We are already 18 months short on this property.
Our Condo Board informed unit owners that Freddie Mac and Fannie Mae have established new insurance requirements for condo loans. Effective immediately residential condo properties must be insured for 100% of the estimated replacement cost. We have also been advised that our condo, like most condos, is insured on a shared cost basis of “80%/20%”, with the 20% being the condo association. Apparently, the Board became aware of this when an owner informed them that a sales contract had been turned down for this reason. To support the owner they increased the insurance coverage. Obviously, this is going to bump up our insurance costs. Are other associations aware of this change? What are the pros & cons for taking this action? Are there options, other than full compliance, to qualify for these loans?
We are a 40 unit association run by a volunteer board. We spent quite a bit of money with a lawyer regarding our FHA review and have finally received FHA approval again. Recently, our condo president was told that if a condo is repossessed, we can only ask for 0-6 months in assessment fees due to Freddie Mac/Fannie Mae guidelines. In the past we have been able to receive most of our money back, either from the bank or from the eventual individual buyer. Does anyone have any information regarding this? I sent emails to our lawyers but haven't heard anything and am sure they expect me to make an appointment and pay for their face-to-face consultation as well as their reply. I am hoping someone has researched this question. Thanks!
I live in a four unit condo building. I have lived here for 14 years and 2 years ago purchased a larger second unit which is now my residence. My initial condo unit is now rented as is one of the other units in the condo association building.