Gene's Bit of Blogging

Condominium Associations

When Is a Deal NOT a Deal??

Gene Mundt, Mortgage Lender: Posted on Friday, May 04, 2012 10:50 AM

When Is a Deal NOT a Deal??

Have questions regarding condo financing? Contact Gene Mundt, Mortgage Lender

Relax! This is NOT a trick question! The answer to this question? It's actually pretty simple to figure out.

A Deal is NOT a Deal when you will come to regret having made the purchase in the first place, at some later date.

What brought this topic to mind was a thoughtful, well-written blog post by real estate agent and ActiveRain member, Barb Van Stensel. In her post, Barb talks about the realities of viewing, obtaining, then successfully transacting, a condominium property.

Barb Van Stensel is absolutely 100% correct with her summation of condominium purchases too. Buyers should ask questions, demand thorough inspections of the property itself, the property management company involved, AND the condominium association under whose direction the property finds itself, all PRIOR to signing a contract for purchase and seeking financing.

I cannot stress the following advice strongly enough...

When considering the purchase of a condominium property, it absolutely vital that you do your homework regarding the professionals you seek and then work with during your purchase and mortgage financing.

Choose an experienced mortgage professional. Contact Gene Mundt, Mortgage Lender

Choose a real estate professional and mortgage lender that meets and surpasses specific criteria.

And what should that criteria be? Choose only real estate and mortgage professionals that are educated and experienced regarding condominium transactions and have successfully completed and closed them RECENTLY. And I repeat ... RECENTLY!

The condominium market is a quickly-changing housing market. The need for current experience and thorough knowledge and understanding of these transactions ... and their regulations ... cannot be overstated. Simply said ... it is NOT the time to work with a rookie or someone that typically does not work within this specialized market.

The Chicago and Chicagoland area in which Barb Van Stensel and I live, provides a perfect example of the urgent need for meeting the criteria I outline above. Chicago and Chicagoland currently has a large array/choice of condominium properties from which to choose during your condo property search. Choose unwisely regarding your selection of real estate and mortgage professional ... and you run the real risk of personally finding out just when a Deal Is NOT a Deal. Most likely, you'll be living proof of it.

The condominium transaction is where I believe my 20+ years of education and experience within the appraising field pays-off the most for my mortgage clients ... and my referral partners too.

I have a complete and thorough education and understanding of just what constitutes a "condominium" VS a "townhome". I also understand the workings of condominium associations and management companies because I dealt with so many of them while appraising ... and mortgage lending.

I know who to approach and what to ask them ... and just why. What legal paperwork will be demanded. What lending underwriters will seek from seller, management, associations, buyers, etc. I know what information is absolutely mandatory to my transaction ... and how to interpret that information. My clients and referral partners have come to know this regarding my services and depend on the benefits and protections that knowledge and experience affords them.

When is a Deal NOT a Deal?? That's simple, especially when speaking of condominium transactions.

A Deal is NOT a Deal when ... you come to wish you'd never seen or bought your condominium in the first place ... or you wish you had chosen another professional to work with during your purchase or mortgage transaction.

Don't let that be you! Protect yourself when buying a condominium by seeking-out and then working with an experienced, knowledgeable, successful real estate agent and mortgage lending professional. You'll be glad you did ...

* Thinking about buying a Chicago or Chicagoland condominium now or in the future? Contact me! I'll put my years of experience, education, and expertise to work on your behalf.

Click Here! Contact Gene Mundt, Mortgage Lender

I can be contacted at any of the following:

Direct: 815.277.4036

Cell/Text: 708.921.6331

Email: gmundt@thefederalsavingsbank.com

Website: www.genemundt.com

Conveniently via Skype: 630.219.1316

4 a: NO Cost NO Obligation

Mortgage Consultation

0 Comments

Trackback Link

Do Not Fear Tackling Condominium Association Properties and Showing for Buyers with FHA Mortgage Lending Options

Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Thursday, December 22, 2011 10:58 AM

Do Not Fear Tackling

Condominium Associations and

FHA Mortgage Lending Options

Not that FHA financing approval for ALL Condominium Associations is the answer ... but for many it makes complete sense, as it provides the little "extra" incentive for new buyers that will help the Condominium Associations' homeowners SELL their condominium unit during this challenging housing market.

This is especially true as Conventional mortgage lending options are more restrictive, or not even on the table as a mortgage lending option.

I believe, that a Condominium Association simply refusing to consider a FHA approval is irresponsible and is turning a blind-eye to the present homeowners' best interests. There is simply no reason to not at least consider taking this action.

There are clear advantages to be found within FHA financing. Some are:

Lower Down Payments needed by Buyers (brings larger number of potential buyers into the transaction)
Less paperwork (if property is already FHA-approved)
Ready funds from Mortgage Lenders

And that being said, there are also clear and distinct advantages to working with a Mortgage Lender that can assist agents and their potential Buyers with obtaining this important FHA Condominium Association/Property approval. Finding and working with a Mortgage Lender that knows how to accomplish this for a new Buyer can mean the difference between success and ultimate purchase of a desired Condominium property ... and failure.

Do Not Fear viewing and tackling Condominium Association properties and showings. Buyers with FHA Mortgage Lending options can and will find successful buying opportunities there, should you have the right Mortgage Lender assisting you.

This is a prime example of where my 20+ years of experience as a licensed professional IL real estate Appraiser has served my clients and referral partners well. I am completely well-versed ... and have been very successful with obtaining FHA Approval for many of my clients' desired Condominium properties.

Take the fear out of these transactions. Re-gain and broaden property showings. Re-gain and broaden mortgage lending opportunities and advantages when viewing Condominium properties. Become educated and knowledgeable about the FHA Condominium Approval process for yourself, or your home buying clients. Contact me NOW!

* Tackle and Learn all you can about the FHA Condominium Approval process. Buy a Condominium with FHA Mortgage Financing successfully. You can accomplish all of this now ... by contacting me today. Contact me through any of the following:

Direct: 815.277.4036

Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com

Website: www.genemundt.com

Skype: 630.219.1316

Click Here 4 a: No Cost No Obligation Mortgage Consultation

I can also be found on: Facebook, Twitter, LinkedIn, Google+

0 Comments

Trackback Link

CONDOS: Love 'em or Leave 'em. Viewing Condominiums From the Differing Angles ...

Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Sunday, July 24, 2011 5:20 PM

Condos: Love 'em or Leave 'em

Viewing Condominiums From the Differing Angles:

Buyer, Seller, Condominium Association, Lender, Appraiser

For Buyers: Condominiums can be a great way to participate in the American Dream of Home Ownership. Buying a condominium ends throwing away money on rent.

Condominiums allow first-time home buyers an affordable entrance into the housing market that a single-family residence might not. Yet, it offers them a lifestyle that eliminates maintenance of landscaping and property exteriors.

Condominiums can provide that intermediate entrance into owning property and one where they can learn the "art of home ownership". They can dip their toes into the proverbial waters at their own pace. Owners share amenities that they otherwise might not be able to afford, such as pools, clubhouse, fitness centers, and more.

But the consideration of condominium ownership has increasingly grown to include more and more "asteriks". Things to be considered prior to buying.

Someone considering a condo purchase must do their homework and educate themselves about concerns surrounding condominium ownership as a whole ... plus that of the specific property they are considering. And that knowledge must include information regarding the property itself, ownerships and possible rentals within the condominium project under consideration, and the Condominium Association involved in that project.

While possibly simplifying life AFTER purchase, the act of buying a condominium is NOT simple for a current potential buyer. There is much to consider. (Later in this post, I will explain how the choice of mortgage lender can simplify this process and greatly enhance the potential success of a condo purchase.)

For the Seller: Perhaps it has become time to consider moving on. A growing family, the need for more space, a desire for a yard, and more can motivate a move. Ownership of a condominium likely served the Seller well, for all the reasons mentioned above. Now it is time to move on.

But of growing concern is the "sale-ability" of their condo property. And at the top of the list of concerns is the potential for new owners/buyers to finance their purchase.

The hard, cold facts of selling a condominium is currently this: the reckless lending policies of the past and the many foreclosures found within this type of home ownership presently penalizes condominium sellers. Losses suffered elsewhere (even in other states) have taken a heavy toll.

Condominium Associations are being called upon to make some pretty heavy-duty decisions. Many of those decisions directly influence the "sale-ability" of the condominiums under their rulings. That causes many condo owners to question whether their Condominium Association should have the right to initiate a ruling that would ultimately restrict their ability to sell, or to rent their condo unit.

More and more often I find myself as a Mortgage Lender offering this advice to those considering the purchase (or sale) of a condominium: Be prepared to be involved in your Condominium Association. You protect your ownership and future property interests best if you are.

Condominium Associations: Associations have to maintain the integrity and long-established Declarations and By-Laws written and currently in place. (BTW, this is probably a boiler-plated, attorney-drafted version passed and around since the early 80's).

Many condominium projects currently find themselves un-approvable by FHA, or they simply have decided not to allow FHA financing. All this while Private Mortgage Companies have tightened guidelines on Conventional Loan Options.

In many cases, condominium projects have limited themselves in financing terms to 20% down payment buyers ... or cash transactions. How many of those buyers do you know?? Especially when condominiums draw a large portion of their ownership from first-time buyers and/or single buyers??

It's easy to see that decisions made carry ramifications for Sellers and potential condominiums buyers, as well.

For Lenders: Without knowing the "current statistics and status" of an Association, mortgage lenders will not even consider an underwriting review of a Borrower's loan file. In fact, given the larger percentage of defaults and foreclosures to be found on condominium units, Fannie Mae, Freddie Mac, and even FHA, have "re-evaluated and re-written" underwriting guidelines.

In addition, private lenders and servicers have added their restrictive "overlays" concerning condominium lending. Why??

Because the general health of any Condominium Association can lead to defaults, foreclosures, and bank losses, simply because they can affect an owner's willingness and ability to make timely mortgage payments and Homeowners Association payments.

For Appraisers: Appraisers have to do more work to obtain the numbers and Association statistics. They also have to be knowledgeable and recognize the subtle differences that can impact value and marketability of a given condominium unit in their reports.

Appraisers must ascertain the legal ownership of a condominium unit that could be either in a Condominium Project ... or a Planned Unit Development. A PUD necessitates the need to cite "like properties" as Comparables, write the report on the appropriate appraisal form, and understand and convey those differences to a report reader (i.e., Lender, Underwriter, Agency, etc.).

Summary: All the above considerations must be weighed. Simple problems, right?

No, certainly not. And all must be taken into consideration when considering the purchase of a condominium as a potential buyer ... and also by the agent when considering properties to show their clients and when referring a mortgage lender.

A buyer and their agent both must consider the success rate, knowledge, and condominium "education level" of the lender being considered for use during a transaction. The bottom-line to the successful purchase of a condominium might just lie within that lender chosen.

Choose and work with a mortgage lender that knows how to navigate condominium lending ... and also the FHA approval process for condominium projects (which may be necessary and/or helpful) .. and you greatly increase the likelihood of successfully completing transaction's success. Choose otherwise and failure is a likely outcome.

* Should you be in need of mortgage advice, guidance, or assistance, please do not hesitate to contact me at: Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com Website: http://www.genemundt.com

NO Cost NO Obligation Mortgage Consultation: http://www.genemundt.com/Mortgage-Consultation.html Skype: 630.219.1316

0 Comments

Trackback Link

Recent Posts

Categories

Condominium Associations

When Is a Deal NOT a Deal??

Do Not Fear Tackling Condominium Association Properties and Showing for Buyers with FHA Mortgage Lending Options

CONDOS: Love 'em or Leave 'em. Viewing Condominiums From the Differing Angles ...