FHA tightens condo-loan rules | The C...

FHA tightens condo-loan rules | The Columbus Dispatch

There are 16 comments on the Columbus Dispatch story from Oct 19, 2009, titled FHA tightens condo-loan rules | The Columbus Dispatch. In it, Columbus Dispatch reports that:

Federal rules set to take effect in two weeks are expected to make it much tougher to buy and sell a condominium.

Join the discussion below, or Read more at Columbus Dispatch.

Margo Roop

United States

#1 Oct 19, 2009
Article did not include the fact that banks/credit unions will not lend money if the Condo Association does not have a good amount of money in their account. The listing REALTOR should let the buyer beware of that situation before any transactions.
I lost about $700. thinking the condo was mine.
I was 3 days before closing, when the bank decided the association was not in good standing. It took the bank over 60 days to make that decision. Who dropped the ball on this?
My credit score is very high, so it didn't have anything to do with me.
Balls Deep

Columbus, OH

#2 Oct 19, 2009
These new rules do no good whatsoever EXCEPT make it easier for the FHA desk jockies to review loan approvals. BAD GOVERNMENT! I urge every condo owner in central ohio to write thier congressman.

Zanesville, OH

#3 Oct 19, 2009
Personally, I think this is very good legislation and should be even stricter. I would warn any prospective condominium buyer to do a lot of research before buying. There are a LOT of reasons not to by a condominium! Just about everything you do is CONTROLED! WHERE YOU PARK, WHEN YOU CAN PARK THERE, WHEN YOU CAN OPEN YOUR GARAGE DOOR AND HOW LONG YOU CAN KEEP IT OPEN, ETC., THE LIST IS ENDLESS! Then if a condo management firm has been hired, they think they can order you to do whatever THEY decide! So, my recommendation is NEVER PURCHASE A CONDOMINIUM, VERY LOUSY PLACE TO INVEST YOUR MONEY! AND IN MOST CASES, YOU WILL LOSE EQUITY, NOT INCREASE IT!
Steve Thompson

Dayton, OH

#4 Oct 19, 2009
I am sure that in a trashy area like Marion, condos may not be a good investment...however, if you live in a reaosnable place where at least somewhat educated people would desire a residence, then condos are a solid investment. I would enourage that last poster to refrain from make blanket statements like that just because he happens to be a fool.
Good Info

United States

#5 Oct 19, 2009
This seems to make sense, the risks are higher with condo's and our government should not be insuring every loan out there. If the number of associations with adequate reserves can be counted on one hand, doe that not say something about the risk associated with the rest of them?

Zanesville, OH

#7 Oct 19, 2009
Ft Mitchell, KY
I have been there, and you should refrain from calling anyone a fool! You write like an uneducated, pos, that is trying to sell a condo! You should also learn how to spell, it might make you ignorant comments more readable!:-) And, why would anyone from Dumbtucky be posting on here???
Trixie Belle

Columbus, OH

#8 Oct 19, 2009
Oh, great. One more thing to make it harder for me to sell my condo if and when I get laid off. I'll bet this will also increase the number of condos for rent in my development, which will further drive down the value of my place. Gee, the news just gets better and better for us condo folks, doesn't it? Ha!

Downers Grove, IL

#9 Oct 20, 2009
Is there anything in the rules that say a f-ing condo isn't worth more than about 60-70k and I don't get a f where it's at.

Bethesda, MD

#10 Oct 20, 2009
The FHA should write down their portfolio of condo loans to about 20 cents on the dollar on Nov. 3rd. That is what the loans will be worth. What these idiots in government don't realize is that they have already insured many condo loans and if those owners can't sell and the value goea away, what happens. By the way writing those loans down will kill the congressionaly mandated liquidity level of FHA. Another incredible set of decisions by MBA's who have no idea of what running a business is.

Bethesda, MD

#11 Oct 20, 2009
Also, for all those comunity banks about 800 to 1200 that are on the ropes and may fail, well let's just drive another nail in their coffin. Housing has led us out of all previous post WW2 recessions, however the government is determined to keep housing down and our economy in the tank. INCREDIBLE

Chico, CA

#12 Oct 20, 2009
The real problem here is that Condominium Associations (and HOAs) are completely unregulated in many States. These "Associations" are often ridden with, among other problems, poor and or unethical accounting which often leads to nothing but trouble for lenders as well as owners.
American Progress

Washington, DC

#13 Oct 29, 2009
I disagree with the sentiment that this will put the brakes on the first time homebuyer segment-
These new rules may indeed reduce values on currently inflated condos prices thus allowing many FTHBs the opportunity to save for a traditional 20% down payment instead.
Maybe then the condo segment will return back to serving the entry level segment it was designed for... Remember that???
These new rules will also curb the overzealous investors from competing against the FTHB in the condo segment.
Alas why shouldn't the govt be proactive in reducing their risk exposure after all we the taxpayers will foot the bill otherwise if these 3%(over their heads) risk takers continue to display high default rates...
Quail Hollow Condos

Reynoldsburg, OH

#14 Nov 24, 2009
Welcome to the third world, e.g., Quail Hollow Condominiums in Reynoldsburg, Ohio managed by Condo Management of Columbus (and no one is doing anything about it). The neighborhood is morally and financially bankrupt with barely enough money to sustain itself. Selling the nearby “Quail Hollow” pond in order to raise additional funds has been discussed. Hopefully, the city will have enough money to buy the pond and preserve it. But you never know. Maybe someone will buy it and put in a gas station or a used car lot.
The neighborhood is completely dysfunctional. Apathy reigns supreme and no single person is going to save the day and fix it. A few months ago a resident was reprimanded by the condo association president when he called the police to report significant property damage. The condo association president made disparaging comments, called the resident names and asked the police officer if he didn’t have better things to do then take this report.
What do you do about HOA members who break the rules and then selectively enforce and fine homeowners for breaking other rules? That scenario could never be anticipated by a potential buyer (like me), they have to hear it from other homeowners and I am telling you this happens at Quail Hollow in Reynoldsburg, Ohio frequently.
The strength and success of an HOA relies heavily on the members of the Board. Sadly, as it is with Quail Hollow, often times it is individuals with agendas and power seekers who end up on HOA Boards, rather than those who responsibly assume the welfare of the homeowners and their largest investment, their homes.
Some of the residents have been living in this rat pond for 30 years and like cockroaches they have adapted well. People here gossip like there’s no tomorrow or yesterday. It’s best to stay out of any community and/or board activities and run into your home as quickly as possible before anyone can speak to you. I can assure you if you do not, whatever you say or do will be twisted, turned and spun into whatever suits your neighbor’s agenda.
It seems this is one of the few areas where tolerance becomes a hindrance. The people who stay here and love it are the ones who know that they cannot be themselves anywhere else and get away with it. I learned long ago that if someone has been here for a while and says they love it, and they don’t understand my problem with it, that I should run fast and far from that individual. There is a huge tolerance for unacceptable and socially inappropriate public behaviors, very poor and often abusive customer service, association members who have no ethics (least of all a work ethic), and crime that is unbelievable. And, of course, why wouldn’t crime be off the charts when there is such a tolerance and “me, me, me” attitude. You never know on any given day what you will hear, see, experience or what will happen to you should you leave the confines of your home. This is not a community I would recommend to anyone. Quail Hollow is the armpit of Reynoldsburg, Ohio.
The last condo to sell in this community was a short sale that the owner paid approximately $110,000 five years ago and sold for approximately $89,000. That is an approximate $21,000 depreciation over only five years. There are six condos on the market currently ranging from $89,900 to $106,900. One condominium was recently removed from the market unsold and remains HUD owned. Another condominium was recently placed on the market after each of three attempts at renting it were evicted.
Quail Hollow Condos SUCK

Columbus, OH

#15 Jul 25, 2013
Quail Hollow condominiums in Reynoldsburg, Ohio are AWFUL. I think the ground they are situated on is rotten and unstable. Trees and mail kiosks are routinely uprooted by the slightest windstorm. The basements are damp, musty and full of mold and mildew. It is very unsafe. Notice how many of the patio fences and siding on the buildings is of a different color. Those are the rotten boards the association has chosen to replace but has failed to paint.
O Malarkey

Blacklick, OH

#16 Jul 25, 2013
SUCK, you bought an apartment built in the late 70's to early 80's. Were you heavily medicated when you signed?
Quail Hollow Does SUCK

Columbus, OH

#17 Aug 15, 2013
O Malarkey wrote:
SUCK, you bought an apartment built in the late 70's to early 80's. Were you heavily medicated when you signed?
Bitter much, Malarkey?

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