Reverse Mortgage Problem

[phoenixphyre]

My mother is trying to get a reverse mortgage on her condo and a snag has come up. Since I am a joint owner, I was informed that the condo is no longer "FHA Approved". When we purchased it 13 years ago, it was "FHA Approved" but was informed that the HOA let it lapse.

This is the strangest thing we've ever heard of and this is the only thing holding up the reverse mortgage; is there anything we can do on our end to fix everything so the condo can be "FHA Approved" again.

We tried to contact the HOA and they aren't being very cooperative by not returning our phone calls.

Thanks in advance for your help.

 

[Duranie]

I am not an expert on FHA, but the community in a whole has to qualify for FHA. I am guessing the community does not qualify and if it does not, then you cannot get FHA financing. There really is no way just to make your condo qualify for it if it ispart of a complex. My condo that I used to live in, was FHA approved the time I bought, then the Non-Owner Occupancy sky rocketed to over 50%, making it no longer eligible for FHA.

The HOA really cannot do much to get it FHA approved unless they flub numbers. Is the non owner occupancy is too high, that will do it, though it is unclear by your post why it is no longer FHA.

 

[phoenixphyre]

I am not an expert on FHA, but the community in a whole has to qualify for FHA. I am guessing the community does not qualify and if it does not, then you cannot get FHA financing. There really is no way just to make your condo qualify for it if it ispart of a complex. My condo that I used to live in, was FHA approved the time I bought, then the Non-Owner Occupancy sky rocketed to over 50%, making it no longer eligible for FHA.

The HOA really cannot do much to get it FHA approved unless they flub numbers. Is the non owner occupancy is too high, that will do it, though it is unclear by your post why it is no longer FHA.

Thanks for your reply. I found out what happened from a form my loan processor faxed to me. Back in 1994, we had a big earthquake in CA and our area sustained a substantial amount of damage. The association was in litigation for the longest time, and for one reason or another, the association thought they had reinstated the FHA approval, but they hadn't.

I spoke with them yesterday and they said they should have this taken care of shortly. In the meantime, I'm going to do a daily follow-up with an email so we can expedite this in a timely manner.

Cheers