Monday
Jun222009
Another Up-Date to FHA's Condo Changes:
Monday, June 22, 2009 at 4:04PM On a phone call today with HUD, HUD stated that effective TODAY there will not be ANY Spot Approvals issued on condos. The October 1st change has been pushed up and effective immediately. My team and I are working on more details and will share with you as they come. As always, please feel free to let my team and I know if you have any questions or if there is anything that we can do to help you.
Have a blessed day!
Michelle
Reader Comments (3)
Hi,
We have just added your latest post "Another Up-Date to FHA's Condo Changes: - Michelle's Journal - Michelle's Mortgage Musings" to our Directory of Mortgage . You can check the inclusion of the post here . We are delighted to invite you to submit all your future posts to the directory and get a huge base of visitors to your website.
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Hi,
I have contacted the FHA HOTLINE and I was told by 2 diff. individuals that this change will be effective > = Oct. 1st, 2009. I got a depressing phone call that the underwriter has denied FHA approval of the loan because of the new letter dated: June 12th, 2009 and that "on the spot" loans are being eliminated. Once again, I was told by the HUD representatives dealing with FHA only, that this change is not immediate. I had to contact my lender and infrom him/her on this. Unfortunately, I cannot get any additional proof/documentation to prove this, but you can find the letter# 09-19 posted under:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm
It is NOT noted as immediate, even though words used under "on spot loan" section are very confusing. No wonder! I am still skeptical, confused and nervous. Again, I was told by 2-3 individuals at HUD (FHA hotline) that it's effective Oct. 1st, 2009 and that the FHA on the spot loans are approved until then.
So, let's hope they are not providing us with way too many confusing answers:). I hope to hear more and to see if the loan will go through. I am more optimistic now as it truly does not say "effective immediately" and rest of changes are effective in October 2009. It would be nice if they would re-writte it in a more understandable terminology. Thank you for a wonderful and useful site. I just came across your website now! I am fighting to the last breath on this:)
There has been much confusion around this topic and the true effective date of the changes. There have been many rumors and it's been difficult to verify the facts. It was so confusing that many at HUD did not even know the facts. When speaking with someone at the HUD office, this person told me that the changes were effective THAT DAY, not Oct. 1st. After further research and fact finding we concluded that the changes to the HUD condo approval system/requirements will NOT be in effect until the Oct 1, 2009 date. Wheew!!