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mustang05
183 Posts |
 Posted - 05/09/2008 : 10:45:17 AM
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My clients want to refinane a Condo that they have in Brian Head UT. My concern is that 80% of the homeowners association is owned by a time share company and I can't find a lender that will lend on the property because of this reason.
Why? and how to I get around it? |
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katbunk
1162 Posts |
Posted - 05/09/2008 : 10:47:08 AM
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| so the homeonwers are not in control of the association? The time share company is? This is a huge issue and I don't know if you can get around it. But perhaps others can share more, I'm not real sure if I'm correct or not. |
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mustang05
183 Posts |
Posted - 05/09/2008 : 10:49:00 AM
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| Yeah that sound right and I have heard that this is a big issue but why? |
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hertz
391 Posts |
Posted - 05/09/2008 : 10:50:54 AM
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| Never run in to anything like that, good luck and keep us posted! |
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kalee3415
95 Posts |
Posted - 05/09/2008 : 10:53:11 AM
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The problem isn't association control, it is because with Fannie no single investor or entity can own more than 10% of the units on established projects or 15% on new construction.
quote:
Originally posted by katbunk
so the homeonwers are not in control of the association? The time share company is? This is a huge issue and I don't know if you can get around it. But perhaps others can share more, I'm not real sure if I'm correct or not.
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mustang05
183 Posts |
Posted - 05/09/2008 : 10:56:57 AM
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quote:
Originally posted by kalee3415
The problem isn't association control, it is because with Fannie no single investor or entity can own more than 10% of the units on established projects or 15% on new construction.
quote:
Originally posted by katbunk
so the homeonwers are not in control of the association? The time share company is? This is a huge issue and I don't know if you can get around it. But perhaps others can share more, I'm not real sure if I'm correct or not.
Does that mean that the other 20% of the people in the Condo project are SOL? |
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mudshark
3669 Posts |
Posted - 05/09/2008 : 11:01:03 AM
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| You'll probably have to run with private money on this one. Have you done a title search on recent activities involving the other 20% to see who's playing? |
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mustang05
183 Posts |
Posted - 05/09/2008 : 11:03:54 AM
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quote:
Originally posted by mudshark
You'll probably have to run with private money on this one. Have you done a title search on recent activities involving the other 20% to see who's playing?
That is a great Idea. I'll do that now. |
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kalee3415
95 Posts |
Posted - 05/09/2008 : 11:06:37 AM
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There is more to it than what I posted above. There is a lot more depeding on the classification of the condo. Search the internet for a Fannie Condo Requirement Matrix However, 80% ownership from one entity is a big issue. So yes, I would say that they remaining 20% is screwed when it comes to Fannie
quote:
Originally posted by mustang05
quote:
Originally posted by kalee3415
The problem isn't association control, it is because with Fannie no single investor or entity can own more than 10% of the units on established projects or 15% on new construction.
quote:
Originally posted by katbunk
so the homeonwers are not in control of the association? The time share company is? This is a huge issue and I don't know if you can get around it. But perhaps others can share more, I'm not real sure if I'm correct or not.
Does that mean that the other 20% of the people in the Condo project are SOL?
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mustang05
183 Posts |
Posted - 05/09/2008 : 11:15:59 AM
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[quote]Originally posted by kalee3415
There is more to it than what I posted above. There is a lot more depeding on the classification of the condo. Search the internet for a Fannie Condo Requirement Matrix However, 80% ownership from one entity is a big issue. So yes, I would say that they remaining 20% is screwed when it comes to Fannie
Can anyone explain the reason behind this guidline? Are they worried that they will spike the dues? |
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irishstu7975
225 Posts |
Posted - 05/09/2008 : 11:18:23 AM
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dude you basically stole my thread name from yesterday!! lol
GOOD ONE |
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mustang05
183 Posts |
Posted - 05/09/2008 : 11:19:34 AM
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quote:
Originally posted by irishstu7975
dude you basically stole my thread name from yesterday!! lol
GOOD ONE
Yeah I thought you might get a kick out of it |
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FLhardmoney
153 Posts |
Posted - 05/09/2008 : 3:59:04 PM
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| I'm not sure what you have for portfolio lenders up there but that's what you need. Try your local banks or World if it fits their guidelines. Good luck. |
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lunarhamster
2291 Posts |
Posted - 05/09/2008 : 4:16:14 PM
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| I hate when that happens. |
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