In June, HUD released Mortgagee letter 2009-19 announcing changes to FHA Condominium guidelines effective October 1st, 2009. The changes outlined in the the letter are big ones and will effectively change the way every lender processes condominium approvals through their system. So, now it is September 16th of 2009 and we haven't had any follow up from HUD as to how these changes are going to be put into place and what our internal procedures are going to look like to comply with these changes. There has been a lot written about these changes in the last three months, but none of it has been vetted with HUD. HUD only communicates guideline changes through it's official Mortgagee Letters and there hasn't been another one issued on the topic since June.
Now I am hearing whispers that the October 1st deadline is going to be extended until Novermber 2nd. Again, more rumors. This could have some serious consequences for some in the market place. I know for fact that there are potential buyers and sellers that were looking at a window of opportunity between October 1st, when the new guidelines go into effect and November 30th, when the $8000 tax credit expires. So, if you are out there and you are counting on this, stay tuned, there might not be good news on the horizon.
Joe Burke
Your Chicago Mortgage Guy
773-742-6707
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