As anyone representing clients in Sun City West knows, there has been a limitation since November 2016 on FHA loan products (purchase, refi, reverse mortgage).
WeMAR first notified the Sun City West Recreation Center Board of Directors of our concerns regarding the Association’s governing document language conflicting with the FHA Free Assumability Clause in FHA underwriting guidelines in December 2016.
Yesterday, the Sun City West Recreation Center Board of Directors voted to amend their policy. The new item, 3.5 of the Policy Statement – Fi17 Asset Preservation Fee, exempts lenders who foreclose or perform a deed-in-lieu of foreclosure from the mandatory Rec Center fee at transfer of title.
Because this action is so recent, WeMAR suggests REALTORS®, Lenders and Appraisers maintain a copy of the updated policy so they may inform their clients, investors and appropriate bank and government entities of the policy change. We are awaiting final HUD approval.
Thank you to the WeMAR Free Assumability Task Force:
Vicki Frye
Lynette Jorden
Cindy Clark
Michael Thomas
Job well done!
If you or your clients are experiencing FHA loan product denials due to the Association governing document language, please contact Liz Recchia (lrecchia@wemar.org) or Kathy Basque (KBasque@wemar.org) at WeMAR. We will provide you with the information you need so that you may impact and influence association changes.
Free Assumability Info:
Free Assumability – HUD Santa Ana Clarifies Who Makes the Rules
WeMAR Free Assumability Education Materials for You to Use in Your Business
Free Assumability – WeMAR Education Coming Soon