Banking & Lending

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It’s all about the Planning! – Tips to getting an Association Loan

The key to obtaining an association loan is to be prepared and follow best practices. The planning that is done two, and even three years before the association actually needs the loan, is critical to getting a loan approved by

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HUD secretary hints that housing agency may ease terms for condo mortgages

Could condos financed with low-down-payment government-backed mortgages stage a surprise comeback under the Trump administration, which generally seeks to reduce federal involvement in housing? Would this be promising news for millennials and buyers with moderate incomes looking to purchase their

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When It Comes To The HOA/COA Lien Process, Misconceptions Abound

Working with homeowners associations (HOAs) and condo owners associations (COAs) often leads to confusion among servicers – and that confusion may lead to problems during the lien process.   uring a recent interview with MortgageOrb, Damon Paxson, vice president of HOA

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Wait…We Need Lender Approval On Our Amendments?

So you’ve gone through months, if not years, of hard work with board members, committee members, and the owners to finally amend the declaration for your community, and owners have finally approved those amendments. Celebration time, right? Well maybe, or

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Co-op and Condo Financing: A Market Overview

Today, some eight years after the economic devastation of the Great Recession first began to gather steam, financing for co-op and condominium buildings and individual unit purchases is again widely available. The market is overall quite healthy, and though there

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Are HOAs Taking Advantage of Mortgage Servicers?

While Homeowner Association (HOA) liens for unpaid assessments typically have priority over second mortgages and other junior liens (because the HOA liens may “relate back to” the HOAs’ previously-recorded declarations), first mortgages receive special treatment in various states, such as

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Are condo & HOA bank deposits fully insured by Uncle Sam?

Condominium and homeowners associations (HOAs) currently have an estimated $50 billion on deposit nationwide in banks to stash operating account and reserve funds, experts say.  Is it possible that hundreds of millions of dollars on deposit by the estimated 50,000

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Need a loan? Show lenders your association is a worthy investment

As spring weather approaches, big-ticket construction and repairs are coming up at many community associations. So is taking out a loan to pay for them. If associations qualify, that is.  Associations will be denied if their finances are in disarray.

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Should condo association borrow money for new roof or use reserves?

Q: We are a 35-unit condo building. Our reserves are nearly enough for a new roof. The board is having a heated discussion on whether we should have a special assessment for the remainder of the roof or take out

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Condos Must Reserve To Preserve — And Get Loans

Every community association should have money set aside “in reserve” to cover the cost of emergency or major repairs

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Be Prepared: How to Avoid the Super-Priority Trap

Servicers can face significant obstacles in preservation of their rights vis a vis assessments by homeowners’ associations and condo associations

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Now Might be a Good Time for an Association Loan

Community association loan rates are probably lower than you think. Some of our associations have seen rates in the 4% range, and they may be going even lower if recent economic trends continue.

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How Mortgage Servicers Can Prevent Liens From Cutting into Investor Profits

For some time there have been questions surrounding how servicers can protect the lien rights of their investors with regard to the lien position of Homeowner Association properties, but there are ways to avoid this conflict.

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Should Your HOA Take Out a Loan?

What do you do if your homeowners association board is planning a big project but doesn’t have information saved in the reserves or operating budget for the entire cost?

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Why a Loan is (Sometimes) a Good Idea for Your Homeowners Association

What should you do? Split the project up over several years, levy a special assessment, or maybe get a loan?

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Receiving a Lender Project Questionnaire

There is nothing quite as daunting for a community association board member or manager as a Lender Project Questionnaire, sometimes also referred to as a condo questionnaire or a PUD questionnaire, finding its way to your desk. As your trusted

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How To Bulletproof Your Association’s Biggest Asset: The Money (Pts. 1-4)

If you are elected treasurer of your community association and accept the challenge, there are many policies and procedures you will need to learn before you start planning budgets, collecting assessments, and signing checks. Board members and officers of all community

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Choosing the Right Bank – do you know their Safe and Sound rating?

When you are responsible for managing the money of other people, you are entrusted with more than just the earning potential of that money. The word “management” by definition encompasses handling, direction, and control. Choosing the right institution to aid

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ACH: The HOA & Automated Clearing House Transactions

If you ever get the good fortune of working at a bank you will quickly learn that banking has more acronyms than the United States Military. Every once in a while these bank acronyms seep out into the mass public

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Effective and efficient cash management

Board members have the fiduciary responsibility not only to monitor the income and expenses of their association but also to utilize processes that provide both safety for assessments collected from homeowners and control of costs. If your community association or

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Now is The Time – Check Today’s Financing Options for Projects

If you’re on a board in a New England condo or HOA, now is the time that you should be talking about making any of the major improvements that you’ve discussed or considered over the past few years. Even if

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Funding for Homeowner Association HOA Capital Improvement Projects. What are the choices?

For the vast majority of Homeowner Associations HOA in America, capital improvement needs nearly always outpace the financial resources available to fund such projects. For many, Capital Improvements, Reserve Studies, Reserve Allocations, Annual Assessment Increases, and Special Assessments all send

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Protecting Lenders Making Condominium Development Financing

Financing condominium development involves a great deal of risk as a result of the nature of a condominium and the government’s involvement in the process of creating, selling and, sometimes, operating residential condominiums. The due diligence prior to making the

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Bank Loan? Reserves? Special Assessment? Community Associations Should Consider their Options

A decade ago, most condominium associations would not have considered applying for a bank loan, and a good thing – because they would have been hard-pressed to find a bank willing to make one. Today, associations will find that banks

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As legal persons, banks enjoy the benefits AND the responsibilities of persons

In the last few years, we have seen more and more banks acquire title to condo and HOA property after foreclosure. Florida statutes provide that legal title passes upon the recording of the certificate of title. I am not going

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