If you are buying a condo, you don’t want to get surprised midway through the process by discovering two new requirements have been put into place by Fannie Mae and Freddie Mac (the government sponsored enterprises that provide money to banks and mortgage lenders. I believe FHA is following suit.
Your closing date could be delayed, or your entire sale could be denied — even if you already have pre-approval and desktop underwriting approval and a letter of commitment. All that will mean nothing if the condominium cannot meet these new rules.
Don’t blame your loan officer or your lender. The new conditions come down from the United States government.
Remember the Surfside Condominium collapse where 98 people died in June 2021? That is what precipitated these two new questions on the required Condo Questionnaire.
Question #1: Has the condo had an Engineer’s Report in the last five years?
Question #2: Is there any pending litigation?
The best time to ask these questions is before you tour the property and fall in love with its beauty. Please pass this vital info on to other real estate agents, because the last thing buyers need is last minute fallout on their sale!