Posts tagged "Condo Owners"

Mortgage Refinancing and Condo Buying Now Much Harder

If you’re planning to buy a condo or refinancing your condo you might sense the mortgage credit and mortgage refinancing squeeze.

Due to the results of the huge investors like Fannie Mae and Freddie Mac including the new stiffer restrictions by mortgage insurers for condos, being able to refinance your condos mortgage seems to be tougher than one might have thought.

Starting May 1st one of the biggest private mortgage insurers will not cover refinancing condos or new buyers of condos in countless ZIP code areas around the country that have seen a “decline” in mortgage credit and market conditions.

Even if the market was at its healthiest a condo buyer will need to put a minimum of 10 percent down payment. Mortgage insurers would also reject and condo applications if more than 30 percent of the owners of the condo are investors.

Those condo buyers that have a 20 percent down payment would not feel the affects of the mortgage insurers cutbacks. Mortgage insures will continue to refinance mortgages and continue to take applications for condo buyers that have at lest 10 percent.

Huge mortgage refinancing lenders have issued new guidelines that make it tougher for mortgage refinancing lenders to make loans available to buy condos or refinance mortgages.

To insure these guidelines for condo buying or refinancing are followed loan officers now need to take into account the number of condo owners are late on fees, their legal information, the amount of commercial space available and percentage of investors that are owners of condos.

Smaller lenders find these new guidelines for condo buying and mortgage refinancing unfair. The complain that smaller insures due not have the man power to carry the extra work to help mortgage refinancing and condo buying.

Loan officers are required before approving applications for mortgage refinancing or condo buyers to confirm that minimum 10 percent of the condos budget is available for “capital expenditures and deferred maintenance.” Some lenders feel that many loan officers would not approve applications for mortgage refinancing or condo buyers if they see that less than 10 percent of the “budget” is available in non physical items even if it includes insurance.

The bigger mortgage lenders say that although mortgage refinancing and condo buying applications are going to be more difficult because of all the extra paper work including the extra man power needed is going to be difficult it is necessary because of the decline in condo and homes around the country.

President of Family Choice Mortgage Corp a Connecticut based business has said that in these difficult times in the economy potential condo buyers and people who would like to have their mortgage refinanced many will hear that they can not be accepted as qualified buyers until all of the paper work is submitted and qualifies. Some condo buyers and people that want to have their mortgage refinanced even with good credit and equity may find the process difficult.

Some private mortgage lenders are now refusing to approve condo units in the same condo project after a certain percent to help restrict their exposure to any losses.

President Of Equitable Mortgage Corp., Bruce Calabrese has said that even he would have trouble refinancing his mortgages on his two condos even though he is in the business.

-M Petrone

Refinance FAQ & Advice

M Petrone
http://www.articlesbase.com/real-estate-articles/mortgage-refinancing-and-condo-buying-now-much-harder-674646.html

What kind of earthquake insurance to you other California condo owners have?

Our HOA has some coverage, but I’m looking for supplemental insurance to cover meals and hotels if necessary, special assessments, things like that. Any ideas?

Can’t you get an earthquake endorsement on your condo owners policy? The HO6 form? If you were outside of CA, that’s how to do it. I"m not familiar with CA, so I don’t know if you can endorse a standard policy for earthquake, or if you need stand alone coverage, but your insurance agent should know, and should be able to help you!

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New Florida Condo Owners Insurance Policy?

All condo owners are required to have their own home owners insurance policy. After paying my mortgage,and association dues,as a single parent with one income,I have no money left for this additional expense. What must I do?

home insurance covers lots of different things. I’m not familiar with the Florida laws and regulations, so I suggest you call a nearby homeowners insurance agent. http://www.easyhomeinsuranceguide.com/Florida-Home-Insurance.html They will be able to help you.

Do I need to buy Title Insurance for my condo? What is the risk?

I am buying a condo in a new development and paying cash for it. I understand that mortgage lenders require title insurance, but that isn’t an issue here. I understand that the insurance is there for peace of mind to protect the large investment, but I don’t understand what the risk is, especially since the other 110 new condo owners in the building are likely going to purchase title insurance at the requirement of their lender. The Title Insurance company wants to charge $820 for ALTA Owners Standard Coverage.

I don’t know about new construction, but I too, bought my sisters home for cash and I didn’t do a title insurance….My attorney advised me against it, but I know she didn’t have any liens on the property…..When we went to sell it, the buyers needed title insurance, for they were getting a loan and it came out clean….But I knew my sister and I know she has impeccable credit! I have to agree with the person that said, you don’t know if the builder may not have paid everyone, other contractors, who may come back and placed a mechanic’s lien….I would recommend it for this property…..BUY the insurance, you don’t know who you are dealing with….it just makes sense…

Condo Insurance – What should I consider when purchasing?

Looking to buy condo insurance in NYC, any tips, suggestions and best practices welcome.

Okay. To be honest, this is a question that the Condo-owners Association normally doesn’t understand themselves. The answer to your question, lies in the Condo. Assn. Documents. It’s in the "doc’s" under headings, like "Insurance Requirements" or some similar verbage. Now the "doc’s" can be some 300 or more pages, so a little investigation is necessary.

You should go to a large, well known property insurer for the state of New York. It may cost a couple of bucks more a year to do this, but believe me, It’s worth it if you have a claim….Ask the agent for a "Condo-Owners Policy". Now, I am assuming that you own the condo. If you are a renter, then the whole story changes, but…

The HO-6 Condo policy, will cover, pretty much, whatever the Condo Association policy doesn’t, as far as, your property. From, floor and wall coverings to the comforter on your bed, though these are separate parts of the HO-6 policy. The policy is broken down into 5 basic coverage sections.

A – Building Items (Kitchen cabinets, floor & wall coverings,sinks, Vanities, Etc..)

B – Other Structures ( Sheds, Fences, etc…)

C – Personal Property (From your best pair of shoes, to your toothbrush)

D – Additional Living Expense ( If your house is too damaged to live in)

E – Personal Liability ( Anything, legal, that you might be "legally liable" for. This coverage also includes "Medical Payments to Others" coverage, if someone slips and falls at your home, or the like.

The coverage you purchase, will normally be based on the "Coverage A Limit". So if it would only take $50,000 to rebuild the inside of your condo, you may only get $25,000 for "Personal Property" coverage. If you need more, it can be purchased.

Was that a long answer to a short question?

Go find a good local agent, and make him /her explain the coverages. If they can’t do it, you might just want to keep looking……You could already know more about it than them.