Happy Thanksgiving all,

To close out my holiday week I have a Condo listing that was supposed to close this Friday 11/27/2009 . The buyer works for Bank of America and Buyer chose to do a loan with Bank of America for her condo purchase.  This is a brewing “double negative”.   In my Short Sale world Bank of America is on my wall with about 5000 holes from dart throwing.  I warned the buyers agent that it was not FHA approved and it could be a nightmare even though I did check with the Property Management Co when I listed  to see if they had 10% of their operating expenses in reserves for FHA approval.   Buyer could go conventional but her father told her to do FHA since it’s only 3 1/2 % down.  I updated to the agent that the Property Management Co  had never dealt with FHA since the Management company had no idea what I was talking about when I mentioned “FHA approval”.  Remember, FHA mortgages were never used in the last 10 years since 80/20 loans  were the only way to go.  FHA for us in the last 10 years was always such the nuisance in our lives.  Now FHA is our saving grace.

11/24 – 3 days before closing date- I get an email from the agent that was forwarded to me from Bank of America asking for knowledge of FHA mortgages in this complex since Property  Management company did not have that information. 

11/25- Bank of America asked agent to go to town hall and make copies of every  single deed in the complex that sold between now and 2003  and to  please forward to Bank of America.   Bank of America also stated closing will be extended to 12/4.   They said if they were to  hire a title company to do a title search on all properties it would take a few days and cost $thousands. 

Buyers agent got it done yesterday and Bank of America accepted his data.  Whewwww!

To properly represent buyers and sellers for a condo do your homework for lending options when you prep to take a listing for a Condominium and put all information in the MLS to help Buyers Agents. 

I guess one of the things I am thankful for this year in my financial world is… FHA lending – bitter-sweet.

Peace and good health!