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. Read the rest of this entry »

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