BluefoxToday blog : FHA Condominium Expiration Dates Extended

FHA Condominium Expiration Dates Extended

FHA must be hearing the outcry because this week FHA Condominium Expiration Dates Were Extended.  This is a much needed and positive move on the part of FHA in my opinion. 

The reality of what was going to happen once Condominium Complexes started to come off the FHA Approved Condo List did not begin to hit home until the dead line was upon us, and Condo's that had been FHA Approved no longer were.  Condominium Owners that were trying to sell their Condo's were not happy with their Condo Management Firms that they had not Re-Certified the Complex, and now the number of possible Buyers for their Condo had be slashed.

Even though FHA has extended the expiration dates, they have only done so for a short time, and there is no indication that they will consider doing this again.  Below are the extension dates based on five-year time periods.  Notice that Condominium Complexes with original approval dates from 1972 -1985 are only being extend to the end of the year.

Initial Project Approval Dates           Current Expiration Date        New Expiration Date

1972 - 1980                                          December 7, 2010                 December 31, 2010

1981 - 1985                                          December 7, 2010                 December 31, 2010

1986 - 1990                                          December 7, 2010                 May 31, 2011

1991 - 1995                                          December 7, 2010                 July 31, 2011

1996 - 2000                                          December 7, 2010                 August 31, 2011

2001 - 2005                                          December 7, 2010                 September 30, 2011

2006 - 2008 (Sept)                               December 7, 2010                  March 31, 2011

A large part of the reason why FHA was so willing to extend the dates was because of their own work load.  FHA was beginning to see a substantial increase of requests for Certification and Re-Certification and they needed the extension to ease their work load.  Lenders and/or other interested parties are encouraged to begin the approval or re-certification process as early as possible so as to not run up against this deadline crunch again.  As I stated earlier, another extension is unlikely.

The new updated dates were posted on the FHA Connection databases on December 7, 2010.  The links are: 

Condominium look-up page: https://entp.hud.gov/idapp/html/condlook.cfm

FHA Connection: https://entp.hud.gov/clas/index.cfm

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308, gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

Comment balloon 32 commentsGeorge Souto • December 10 2010 01:57PM

Comments

George, anything that can be done to help the owners and prospective new buyers is essential to keep everything moving. This deserves a star so I'll sssssssss it
Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) almost 8 years ago

George, the latest stumbling Block I have come up against is the underwriters are searching the condo projects (on the Internet) to see if anyone is renting short term (on their own through Craig's list, V.R.BO. or the like) and then calling the whole project a "condo-Hotel" due to private owners doing short term rentals. This practice has killed many a deal lately. Even with the Condo docs specifically saying no short term rental, and the project questionnaire saying there is no program (desk) on the site/project...Over zealous -or over cautious? It is getting tougher out there to sell condos.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) almost 8 years ago

George, thanks for this update....very important info for condo owners, sellers, buyers, real estate agents AND property managers.  Hopefully these extensions will help a little!

Posted by Lisa Orme, Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu (The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY) almost 8 years ago

Hi George - I was glad to hear the news too.  The condo market was getting tough--let's hope it gets a bit of a reprieve.

Posted by Peggy Chirico, REALTOR® 860-748-8900, Hartford & Tolland County Real Estate (Prudential CT Realty) almost 8 years ago

A reasonable concession on an absurd imposition! Ya, right!

It's always comforting to know, the government or their agents is here to help.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) almost 8 years ago

Very interesting George how the extensions are working. Some age groups extend only to the end of this year....

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) almost 8 years ago

Ed, this would have been the wrong time to have taken some of these Condo Complexes off of the list.  Hopefully the Condo Management Firms will use this time wisely and go through the re-certification.

Steve I have not seen that done around here.  We for example will just require the Condo Questionnaire, Budget, and Insurance.  If all of that checks out they are good to go.

Lisa the extensions should help but these Condo Management Firms need to get off their donkey and the the Condo's re-certified.

Peggy it will help but these extensions are short, so they don't have time to waste in getting them back on the list.

Bill as always you ascess the situtation correctly :)

Al and Peggy and that grouping will affect a large number of Condo's.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 8 years ago

George - I couldn't be happier to see that these expiration dates have been extended.  You would think that the management companies that serve condos would want to do everything in their power to get these certifications done sooner rather than later.

Posted by Donna Bigda, Greater New Haven CT Real Estate (RE/MAX Alliance) almost 8 years ago

George - so glad to see these extensions. I sure hope it will help. We can count on you to provide the best up-to-date information on the mortgage industry.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) almost 8 years ago

That's good news for condo associations George!  I'm sure they're inundated right now with with a mouintain of applications.  I found the re-certification process to be ridiculously cumbersome.  They asked for all this paperwork - they got it!! 

Posted by Karen Bernetti almost 8 years ago

This is good news George. I know of a few people that were breathing a Si of relief!

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) almost 8 years ago

Very sorry to hear that this will affect a larger number of condominiums George, that is usually where first time buyers start. Guess the longer extensions for some is good.

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) almost 8 years ago

George, Great info to pass on to consumers. We do not have any condos in my area so it's not something that I even have to think about. Living in an area that does not have condos makes it seem odd to even think about marketing them, selling them, and getting them financed. If I ever move, I'll have to learn a thing or two that I've not had to deal with here in Southeast Oklahoma..

Posted by 1 ~Judi & Don Barrett & Chassy Eastep - Integrity, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) almost 8 years ago

Hi George -- Anything that can affect demand for condos, which are struggling already, isn't good, so I hope this process gets straightened out for the better.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) almost 8 years ago

Congratulations on your feature George. We know you work very hard to keep all of us up to date and informed.

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) almost 8 years ago

Donna they were really dragging their feet.  Let's hope they take advantage of these extentions.

Jeff thank you, I do what I can :)

Karen as much paperwork as they ask for now, they use to even ask for more.  Good luck with your re-certifications.

Bill I bet they were, but they better act quick because the time will be up again before they know it.

Al and Peggy, even a short time is better than nothing.  Hopefully they will all take advantage of the extra time.

Judi, who knows maybe Condo's will be in your future :)

Chris you are right, the Condo market is tough right now.  FHA is the way to go with Condo's because Fannie and Freddie have made things tough.

Al and Peggy, thank you.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 8 years ago

Hmmm, this is something which I had never thought about. I had always just assumed that approvals were for an indefinite period of time. Thank you for bringing this to my attention. It is something I will know to look out for now.

Posted by Mark Montross, Listing and Buyer Specialist (Catamount Realty Group) almost 8 years ago

Thanks for the great information. Just happened to be showing condos this afternoon.  I never knew that the certification expired. 

Posted by Jamie Parker Gwinnett, Realtor, Snellville Homes (Exp Realty) almost 8 years ago

George this is great news for many, the extension will certainly help.  Thanks for always keep us up-to-date.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) almost 8 years ago

George, good information for these sellers. Thanks for the update.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA almost 8 years ago

George,

I would think they would keep it open for a long time to come..there are many condos here that are up side down or in foreclosure and communities with tons of them sitting empty so you would think they wouldn't want to alienate the possible chance of putting people in them instead of helping them turn into a ghost town.

Posted by Neal Bloom, Realtor CRS-Weston FL Real Estate (eXp Realty) almost 8 years ago

Mark up until February of this year that was the case, but as of February everything changed and Condo Complexes will be required to re-certify every two years.

Jamie, the site is down this weekend, but it should be back up tomorrow.  If the Condo Complex was on the list then it will need to go through re-certification, if it wasn't on the list then it will have to go through the certificaion process which is not much different than the re-certification one.

Jennifer you are very welcome.

Michael glad that you found it helpful.

Neal follow the link.  You can pull up the Condo's by state, city or just individual complex.  They have to go through re-certification if they want to stay on the list, if they don't they will no longer be on it once their certification is up.  Condo Complexes have had almost a year to do this, and now have been given additional time.  If they do not do it, they don't have anyone to blame but themselves.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 8 years ago

George, as you know I deal with condo sales in my area although it's not a large part of my business.  Like a couple of other comment's I didn't know the certification expired.  Thanks for keeping us informed...probably saved my butt from looking silly in front of a buyer or seller.

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) almost 8 years ago

Thanks for the great post, George. Let's just hope that the condo managers do what they need to do in a timely manner.

Posted by Barbara Altieri, REALTOR-Fairfield County CT Homes/Condos For Sale (RealtyQuest/Kinard Realty Group, Fairfield and New Haven County CT Real Estate) almost 8 years ago

George, somebody is using some common sense in Washington - this is a no cost way to help housing keep moving and put buyers in empty and sagging communities to buiild them back to where they need to be. It's a no brainer and they should definitely extend it again...and again...until we see stabilization. It costs nothing but makes $$ for everyone involved.

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) almost 8 years ago

George we appreciate you always keeping us informed on crucial issues affecting buyers and sellers.  It's sad that individual owners of condos have to be dependent upon their association's implementation for certification especially when so many are trying to get them moved!  It makes more business for property managers though, for those that cannot sell their condos to buyers seeking FHA loans can rent them.

Posted by Diane Rice, SFR, SRES, CNC ( Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL) almost 8 years ago

Nick looking silly is my specialty so I am glad that I could keep you from sharing in that with me :)

Barbara I hope so to.  They have been dragging there feet around here, and hopefully they will take advantage of this second chance that they have been given.

Frank & Sharon, what you said makes a lot of sense, and it is about time that the government does something that actually helps.

Diane, I agree.  In my opinion FHA made a big mistake when they did away with the Spot Approvals, and made it an all or nothing approval process.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 8 years ago

Glad to see this featured.  The information that you put in your blogs should always be featured!  :)

Posted by 1 ~Judi & Don Barrett & Chassy Eastep - Integrity, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) almost 8 years ago

George, Most of the condo associations, have no clue that this is happening.  I have gone on listings and told the owners that they need to be more proactive with their association and board.  I sold a condo in Southington, last summer, that no one would even believe the red tape that we went through to get it approved and closed.  My Seller, had purchased it CHFA, four years ago and it was fine then.  With all the new regulations, since February of 2010, it is quite a task.  Convincing the boards to change over to the new regulations, was difficult, but, eventually, they cooperated.  They had to raise their monthly fee to meet the guidelines, among other things.

Posted by Frances C. Rokicki, Broker-Mentor,CRS (Fran Rokicki Realty, LLC) almost 8 years ago

George, I just forward this post to a few of my potential condo listings.  Hoping that they understand the new process.  Thanks for explaining this problem, so very well:)

Posted by Frances C. Rokicki, Broker-Mentor,CRS (Fran Rokicki Realty, LLC) almost 8 years ago

George,

Vegas condo market is in such a terrible shape that these extensions probably won't have much effect at all. Hopefully it helps elsewhere.

Posted by Esko Kiuru almost 8 years ago

Hi George,

Many condos are behind the curve on this one it seems. I bet they appreciate the extension.

Posted by Dana Voelzke, Loan Officer/ First time home buyer specialist (loanDepot (203) 733-9408) almost 8 years ago

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