Is Your Condo Blacklisted By Lenders?

[TheSheep]

Sheep do ewer research. SHELLY is a guy. ;-)

Sheep poke fun.

 

[Mango]

Mango gave us some very good posting. Any condo sales contract will be accompanied by an addendum that will state that at seller's expense the buyer will be provided a questionaire from the association as well as the condo docs and current year-end financials. Here is the addendum:

http://tinyurl.com/48dny8

The buyer can kill the deal within 3 days after receiving.

I have seen associations state within the questionaire that they have no knowledge of percentage of renters within the building and answer n/a.

Have you touched on the lender's criteria for condotels? If determined to be a condotel some lenders will approve a loan but at a much higher interest rate. Factors include any one of the following:
1. One night rent available.
2. Can book online.
3. Onsite food delivery.
4. Check in front desk.

Thanks, Joe. I was aware there was a review period, but couldn't remember the law for FL. However, if I were trying to sell a condo, especially in this current environment, I would have those docs readily available to a potential buyer who asks for them prior to contracts being drawn. Why waste everyone's time involved? and if the buyer decides something doesn't bode well with them, do they have the right to renegotiate terms within that three days? It seems to me to be an inefficient way of doing business if the buyer only has the ability to walk after 3 days. Just my two cents.

The guidelines for condotels were listed in the above links I posted, as well as PUDS. (Planned Urban Communities) A PUD you own your footprint (land) but share Association amenities. For all practical purposes they are treated as single family homes for underwriting purposes. I have had some Banks ask for a questionnaire because the appraiser notes it is a PUD, but some haven't.
Very few Banks offer mortgages for condotels. At least in my neck of the woods. It's not very common. I'm sure they are out there, but I imagine would be few and far between because of their likeness to timeshares.

 

[yippie]

Does there have to be any disclosure of environmental issues within a condo complex or building? I know there has to be disclosure in single family homes, or in the exact unit, but what about the project as a whole?

In the questions ask on the link, it only refers to environmental issues regarding state laws, etc. There are many issues that have to be disclosed that are not governed by state laws.

Do these items blacklist a property?

 

[TheSheep]

Full disclosure is required by law by both the Offending Party(s) and the Affected Party(s) for U.S. EPA regulation violations which may result in blacklisting. It is not unusual for Lenders to hire environmental watchdog firms to dogwatch the environmental public notices and report to the Lender dogginess.