Condo Owners: Do you incur additional risk to admit a new co-owner to your Assn. with FHA financing?

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If you don't amend the rules, which I would think it would be illegal not to, then FHA loans would not be attainable on your properties. The result of this will most likely be significant reduction in value.

Condo Owners: Do you incur additional risk to admit a new co-owner to your Assn. with FHA financing?

The reason behind the Realtor wanting to change your CC& R's is to allow the transaction to close. Otherwise his buyer is out of a home (there is no guarantee the loan will go through either right now)and he is out his commission. The condo association will have to factor in if they were to allow any one in that could default on their loan,would they risk the values of other properties locatied in the complex and chance that the property goes into foreclosure with the very real possibility of the property being neglected. Therefore evey condo owner might have a lower value property than if they didn't allow the changes. Your HOA board should consult an attorney as this is also a borderline question of discrimination and the buyers could take the HOA to court,although highly unlikely.

You need to ask at the meeting what difference would it make to allow these buyers in versus a owner renting out their condo to someone who doesn't pay rent, is noisy and allows drug or alcohol traffic through the area. There is more to it then meets the eye and I hope that everyone involved keeps an open mind to the situation at hand so that there is a all around solution.

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Condo Owners: Do you incur additional risk to admit a new co-owner to your Assn. with FHA financing?

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