Condo Approved

One of my clients was looking to purchase a condo in Tampa and I had to do a full review of the condo project’s financials. My client has perfect credit and was putting 30% down but the condo project had about 20% of the unit owners who weren’t paying their Home Owner’s Association fees on time. At first glance I thought that there was no way that I could get this loan done but I then decided to dig a little deeper since this condo unit was a heck of deal and my client was the perfect client. So here is what I did. I contacted the Homeowner’s Association and asked them to write a letter stating what they were doing in trying to recoup the $250,000 in past due Association fees. Well it turns out that they had retained an Attorney and had already recovered about $50,000 in past due fees in the past year. I then asked them to put that in writing and then asked them to document how many unit owners were past due in 2009, 2010, 2011, and now in 2012. Well the trend showed that the number of unit owners who were past due decreasing so they documented this for me. I then turned in these documents and Fannie Mae agreed to do the loan since the Association had an “action plan” to recover the past due Association fees and documented that the number of unit owners who were delinquent was decreasing.