A mandate issued in 2009 by the Federal Housing Administration required that all condominium projects approved for FHA guaranteed loans and refinancing prior to 2007 submit additional documentation by December 7, 2010 in order to remain FHA eligible. This requirement aims to greatly improve the financial stability of these condo projects by guaranteeing adequate budgets and other legal documents are in place. There were more than 25,000 associations that missed the deadline set by the FHA, so the FHA has extended this deadline throughout 2011 for most associations. However, already nearly 2,200 of the oldest associations previously approved have lost their eligibility.
Owners of condominiums are strongly urged to contact their homeowners association to make sure the association submits the required documentation prior to the newly looming deadlines. Sellers and buyers can check the current status of a condominium by following the following link: https://entp.hud.gov/idapp/html/condlook.cfm. Unless these associations are more proactive up to an additional 23,000 condominiums may lose their eligibility in 2011, which would potentially make it much more difficult for owners within that project to sell.
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