Yesterday, we published a post, New San Mateo Condo Financing Guidelines Effective December 2009. Today we promised to tell you how these guidelines affect San Mateo County buyers, sellers, lenders and REALTORS® so here it goes.
HUD’s New Condo Financing Guidelines Affect on San Mateo Sellers
If your San Mateo condominium complex is not approved or cannot get HUD approval, your sale may be in jeopardy. “Sick” Homeowner’s Associations (HOA’s) that are mismanaged, underfunded, poorly maintained or investor dominated are particularly at risk and approval is doubtful. The unavailability of HUD approved financing will render your unit virtually unsaleable. Available financing will be too costly and unacceptable to the most well qualified condominium buyers. Seller financing – for some – may be to only way to sell your unit. My best advice: start now to work with your HOA and property management company to get HUD approval.
HUD’s New Condo Financing Guidelines Affect on San Mateo Home Buyers
Get your lender involved early in the buying process. Notify your lender as soon as you have identified the condo of choice so they can verify whether the complex is approved, or if not, what needs to happen to get approval. If the San Mateo condominium complex is not approved and in the midst of litigation, look for another unit. We explain in our class, Steps to Buying Condominiums and Townhouses in San Mateo, what to look for before putting your money at risk.
HUD’s New Condo Financing Guidelines Affect on San Mateo REALTORS®
It’s more important than ever for REALTORS® to set their client’s expectations accordingly. Taking an unsaleable listing when you don’t know the new condominium financing rules makes you look incompetent. Sellers must understand that the sale is predicated on the complex being approved by HUD and the buyer’s lender. Writing an offer for a buyer on an unapproved condominium complex without explaining the risks and possibility of disappointment is unprofessional. Buyers must include realistic loan contingencies in their offers that reflect the new HUD Condominium approval rules.
HUD’s New Condo Financing Guidelines Affect on San Mateo Lenders
Lenders will have to be at the top of your game. Systems and procedures must be sharpened and efficiencies built into the new underwriting rules. Buyers and real estate agents must be counseled about realistic loan and appraisal contingency time frames. Making false promises about your speedy service can result in a very angry, and vocal, ex-customer.
It’s a new game, so let’s be careful out there.
Looking for a San Mateo Lender Who Understands How to Get Your Loan Closed with These New Rules?
Contact our Co-Author, Chris Williamson of Mortgage California in San Mateo. Chris is a multi-platform lender, which means he is the best of all three lending platforms. He has the control of a direct lender, the wide variety of products a mortgage broker offers and the flexibility of a mortgage banker. Chris is also a Co-Presenter in our San Mateo real estate classes and webinars.
Considering Purchasing a Condo in San Mateo?
If you are considering purchasing a condominium in San Mateo you should attend one of our condominium classes or webinars. In these educational programs, we’ll not only discuss these new financing guidelines in detail, but we’ll also reveal the critical questions you need answered before you purchase one, explain how to protect yourself and much, much more. For more a list of our upcoming classes, visit our Class Schedule page.
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Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.
Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
