Delinquent Dues Of Others Can Affect You

February 19th, 2013

The behavior of others can affect you. The delinquent payment of condo dues of other condo unit owners can affect you. How? I have client who wants a mortgage to buy a unit in a small condo. The condo has 8 units total. I just found out that 2 of the 8 unit owners are currently delinquent on their condo dues.

Fannie Mae only allows a 15% delinquency rate on condo dues, 2 of 8 units being delinquent is 25%! So the loan will be rejected until we can get 1 or 2 of these current units owners to pay their back dues. If only 1 of 8 is delinquent that is a 12.5% delinquency rate, which would fall under the 15% limit, and we could get the loan approved.

It does not seem fair when an otherwise well run condo has a few unit owners who are behind on dues, and that is going to affect someone who wants to be a new unit owner in the building. This shows the behavior of others can affect all of us!

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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