Unwarrantable Condo Question - Mortgage Forum

Pedigree · #1 12-02-2009, 08:06 AM

I am running into a serious snag with the condo I purchased in December 2008. My building is used for residential property, commercial property and a post office. Recently Fannie Mae implemented a requirement that all condos it purchases have "less than 20% non-residential property". Although the post office should be more stable than even residential units, it is classified as "non-residential" by Fannie. Including the post office, my building is between 34% and 39% non-residential depending on who you ask.

I got rejected for my refinance by HSBC for this reason. The refinance rejection is not a big deal, but now I'm panicking because my property may be worthless. If I try to sell my condo five or six years down the road and potential buyers cannot get financing for loans, who is going to buy it?

Is there any way to sell an unwarrantable condo? How do developers do it? I'd appreciate any help. Thanks.

PeteMaver9 · #2 08-30-2010, 10:58 AM

Provide me full detail of your property. Tell me in which area it is. I am Realtor, offer my services and consultancy in buying and selling of homes. We ll help to get maximum deal.
Thank you
Pete

Atlanta Mortgage · #3 08-31-2010, 02:46 PM

This is a huge problem right now. It use to be that we could get a spot approval and go FHA, but now it is very difficult to do non-warrantable condos. Much lenders won't touch them. I have heard of a service where they charge thousands of dollars to consult you on how to get the condo warrantable. I guess the HOA would help pay for that? Bring this up at your next HOA meeting. This can be a serious issue is someone in your community is trying to sell. Let us know how it works out.