Image via Wikipedia
In Mortgagee Letter 2011-22 dated June 30, 2011, the U.S. Department of Housing and Urban Development (“HUD”) consolidated and updated the requirements and procedures for its condominium approval process. The new requirements clarify, expand, consolidate, and update the preexisting guidelines and replaces exisitng mortgagee letters (2009-46a, 2009-46b, and 2011-03).
The new requirements will take effect 60 days after ML 2011-22 was issued for all project approval packages submitted to HUD for review.
New and existing condominiums ( meaning association board of directors as well as condominium developers) should take heed of these new guidelines. The status of a condominium as approved (or not approved) can have an impact on the ability of unit owners to sell units, as qualification for FHA conventional loans hinge upon whether the condominium is approved.
If you have questions or uncertainty about how this affects you, as a condominium unit owner, developer, or lender, we urge you to contact your legal counsel for further discussion.
Considering my assocation board does not seem interested in obtaining information regarding FHA condo association approval, I have decided to try on my own. I am trying to sell my condo and not being an FHA approved association is really hurting. I did a search on the entp.hud.gov website and found that our association appears to have applied but the status shows “Rejected” as of 4/13/2010 due to missing documentation or incomplete package submission. Where can I go from here? Please help!!