So much for FHA

Well there I was (check previous posts) lamenting the short sale process or lack of same. Months in pergatory, not knowing which way the bank will decide your fate and the fate of your earnest clients. Everyone involved BUT the bank in it for the right reasons. So that's one deal. My other active escrow is a Townhouse. It sold in multiple offers, $15,000 over asking. Though the project was not FHA approved the lender for the most qualified buyer said that his was an FHA Certified Operation and with the documentation all in had from this well run HOA there would be no problem.

That was the last time there was "no problem".  Though 20 buyers thought it was worth more than listed, the FHA appraiser didn't agree.  He had "guidlines".  Mmmm.  Ones that didn't include looking at appropriate comparables more that one mile away even if there were NO COMPARABLES WITHIN A MILE AT ALL!  Or even two miles. 

A review from the Senior Underwriter was asked for but answers came slowly due to end of month files that took precedence.  A week passed.  Then in the middle of the second week...another hurdle.  Suddenly the Reserve Study was re-reviewed and it was decided that the FHA would require that this 22 unit project needed to be 60% funded meaning they would need an immediate infusion of $260,000! 

An extremely well run HOA with all the ducks in order....well run, well maintained....but it doesn't matter to the FHA.

By: debsimon | In: Deb's Perspective | Comments: 0 | On: 09/07/2009 18:40:32

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