Lender Talk w/ Shay and Sarah
HOA Liens and FHA Approvals
Lender Talk w/ Shay and Sarah
HOA Liens and FHA Approvals
What is an HOA lien–and why do I care?
- HOA Liens. A lien is a legal claim or hold on a piece of property. … In essence, a HOA will go to court over a homeowner member’s delinquent dues and attempt to convince the court to issue a judgment. HOAs can record judgments that they obtain against homeowner members against those members.
- Under section 38-33.3-316 of the Colorado Common Interest Ownership Act (“CCIOA”), HOAs have the authority to place a lien on a unit owner’s property if that owner’s account with the association becomes delinquent for failure to pay assessments.
- When properties are listed for sale, sometimes the listing agent is unaware of a lien placed on the property. If there is an lien on the property, that unit can’t be bought or sold. It’s important both the listing and selling agent do the due diligence on the property before listing or having their buyer go under contract.
How is an HOA lien removed?
To remove a lien on a property, homeowners must first satisfy the debt owed to the homeowner’s association. To pay off an HOA lien, the homeowner must make payment to the association in the amount of the delinquent assessments, plus interest and any applicable fees.
*You can reach out to Shay or Sarah, and we can look into this property for you to make sure you are in the clear of HOA Liens.
Getting FHA approvals on condos
- It is extremely important to know if a condo is truly FHA approved
- MLS will say a condo is FHA approved when sometimes they are not
- You’ll hear, “Well another unit just sold FHA in the complex.” It can be different per unit, and this can change monthly.
- Spot approvals are almost non-existent anymore especially with COVID
- Again, before listing a condo, or having your buyers get under contract on an FHA approved condo, do your due diligence to make sure it’s actively FHA approved
This happens more often than many realize.
How can I make sure a condo is truly FHA approved?
- First you can always call myself or Sarah to check for you, it’s quick and easy to do
- How can you stand out and help your clients with this matter?
- If you see that the complex was previously FHA approved and the approval has expired, call HUD right away at 303-672-5540. Give HUD the address of the unit, and they will let you know exactly what is needed for the unit to get their approval back.
- Once you have this information from HUD, call that unit’s HOA and give them all the information HUD gave you and exactly what HUD needs to get that complex approved again.
- Stay on the HOA to get all documents sent back over to HUD. If the HOA is quick on this matter, the process on getting that unit approved again can take less than 2 weeks!
CONTACT US
2420 17th Street
3rd Floor
Denver, CO 80202
Team Email: SSMortgageTeam@Nafinc.com
Shay Jenkins: Shay.Jenkins@Nafinc.com | 303-507-6794 | NMLS# 1514100
Sarah Alberts: Sarah.Alberts@Nafinc.com | 720-366-9200 | NMLS# 1032969
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ABOUT S&S MORTGAGE TEAM
S&S Mortgage Team is a full-service mortgage lender based in the Denver metro area. We are licensed in AL, AZ, AR, CA, CO, FL, GA, ID, IL, IN, IA, KS, LA, MA, MN, MO, MT, NE, NV, NJ, NM, NC, OH, OK, OR, SD, SC, TN, TX, WA, WI, and WY.
