For example, Jim Chew of Columbus, Ohio-based Condo Management reports that some developers have resorted to doing condo financing internally.

Lenders in Florida, meanwhile, are leasing foreclosed condos — although they soon could be subjected to new [...]]]> “U.S. condominium lenders, developers, and associations are turning to unconventional strategies to avert financial distress as the foreclosure epidemic continues.

For example, Jim Chew of Columbus, Ohio-based Condo Management reports that some developers have resorted to doing condo financing internally.

Lenders in Florida, meanwhile, are leasing foreclosed condos — although they soon could be subjected to new escrow requirements to ensure that associations are paid assessments in a timely fashion.

Condo auctions, offering discount prices, are another way that businesses are hoping to steer clear of financial ruin.

Source: USA Today”

How are Mortgage Lenders handling it?

Condos Get Creative Amid Foreclosures

Many mortgage lenders have taken a big hit with the bad loans they provided. Which in turn has them extra cautious about which loans they approve and which too decline. They know that until the job market stabilizes, having a good credit score is going to be only a part of the lending process.

In turn, condo associations, like developers and mortgage lenders, are facing significant issues due to the foreclosure crisis. Increasing foreclosures leads to less income from condo assessments as owners cannot pay their condo fees. The lower assessment income means insufficient operating funds to cover expenses such as insurance and maintenance.

What are they doing too stay out of the red?

The news isn’t all bad, however. Condos remain a good investment, as long as you pick the “right” one. Think location, good space, and no lawn to cut. If you’re in the market, here are three ways to boost your chances of financing a condo:

• Look at older buildings, which tend to have fewer restrictions than new construction. In many markets, the upside is character. Crown molding. Cozy room configurations.
• Make sure the condo association is in good health and people pay their assessments on time. The mortgage lenders are tracking this info and may reject the loan if too many people are falling behind. Besides, you want to know that the association has funds for necessary repairs.
• Increase your downpayment. I know it’s difficult, but even going from 10 to 15 percent can make a difference. If you can muster 25 percent, the prospects of approval are much higher.

What options do the Condo boards have?

To stave off financial disaster, condo associations are having to get creative. For example, some condo associations are using reserves to buy foreclosed units, and then renting them out until the sale climate improves and the unit can be sold at a decent market value. This action provides 2 advantages: the unit is prevented from being sold too far below market and the association is able to recoup some additional funds.

Some courts have ordered receivers in bankruptcy to collect rents where owners have rented the unit out but weren’t paying the condo assessments and use the rental income to pay overdue condo assessments.

Some condo association that had banned owners from renting their units are relaxing those rules, or creating hardship exceptions, to allow owners to avoid foreclosures.

Hoped this helped, if you need any more answers feel free to Contact Us again

-Walter Grande

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The Salvation Army is an international, faith-based charitable organization with a simple mission: to help those in need without discrimination.

Headquartered in London—from a building at the foot of the Millennium Bridge—The Salvation Army serves in 115 countries and has an extensive presence in the United States. Adhering [...]]]> From the About Us Page of the Salvation Army:

The Salvation Army is an international, faith-based charitable organization with a simple mission: to help those in need without discrimination.

Headquartered in London—from a building at the foot of the Millennium Bridge—The Salvation Army serves in 115 countries and has an extensive presence in the United States. Adhering to a quasi-militaristic structure, The Salvation Army in the United States is divided into four territories, which are further subdivided into divisions. The Salvation Army Greater New York Division serves the five boroughs of New York City, Long Island, and nine counties in Hudson Valley.

There are overarching themes that run throughout The Salvation Army’s faith-based humanitarian efforts in the United States and beyond, such as relief for victims of disasters, alcohol and drug rehabilitation programs, food, and shelter. The programs and services that each country, territory, or division offers differ drastically depending on the populations they serve. For instance, programs in a third-world country might include a medical clinic or midwifery school, whereas a program in an urban region of the United States might attempt to remedy a lack of extracurricular education for youth by starting a basketball program or a music class.

Of the over 140 programs The Greater New York Division offers, many are operated out of 39 corps community centers (corps) overseen by Corps Officers—men and women who have undergone a two year course in residence at a Salvation Army college where they study theology and field practice courses such as sociology and administration. Corps Officers, who have titles according to rank such as Captain or Major, are ordained ministers as well as community center directors. From building maintenance to deciding whether to start an ESL program or a choir—the Corps Officer is responsible for interpreting the needs of each community. Once needs are determined, Officers work with over 2,000 Salvation Army Greater New York employees (development and finance staff, social workers, etc.) and over 22,000 volunteers to create appropriate programming.

In addition to Corps-based programs, The Salvation Army Greater New York Division administers a wide variety of social services which are largely made possible through contracts with government agencies such as the New York City Department of Homeless Services and the New York City Administration for Children’s Services.

MISSION: The mission of the U. S. Marine Corps Reserve Toys for Tots Program is to collect new, unwrapped toys during October, November and December each year, and distribute those toys as Christmas gifts to needy children in the community in which [...]]]>

From the About Us Page of U.S. Marine Corps Reserve Toys for Tots Program

MISSION:
The mission of the U. S. Marine Corps Reserve Toys for Tots Program is to collect new, unwrapped toys during October, November and December each year, and distribute those toys as Christmas gifts to needy children in the community in which the campaign is conducted.

GOAL:
The primary goal of Toys for Tots is to deliver, through a new toy at Christmas, a message of hope to less fortunate youngsters that will assist them in becoming responsible, productive, patriotic citizens.

OBJECTIVES:
The objectives of Toys for Tots are to help less fortunate children throughout the United States experience the joy of Christmas; to play an active role in the development of one of our nation’s most valuable resources – our children; to unite all members of local communities in a common cause for three months each year during the annual toy collection and distribution campaign; and to contribute to better communities in the future.

ACTIVITIES:
The principal Toys for Tots activity which takes place each year is the collection and distribution of toys in the communities in which a Marine Corps Reserve Unit is located.  In communities without a Reserve Unit, the campaign can be conducted by a Marine Corps League Detachment or group of men and women, generally veteran Marines, authorized by Marine toys for tots Foundation to conduct a local Toys for Tots campaign.  Local Toys for Tots Campaign Coordinators conduct an array of activities throughout the year, which include golf tournaments, foot races, bicycle races and other voluntary events designed to increase interest in Toys for Tots, and concurrently generate toys and monetary donations.

If you would like me too post about any other charities, just ask Contact Us

-Walter Grande

Rent Loss Insurance

which therefore makes it unsuitable for habitation. The policy is often available as a part of hazard insurance on your investment/rental property.

Mortgage payments are made up of four components these include the following Principal, Interest, Taxes and Insurance. Some lenders require 2-3 months PITI reserves in order for your loan to be qualified. PITI reserves are several month cash reserves required by lender that borrowers must have at hand when closing on [...]]]>

What are PITI Reserves?

Mortgage payments are made up of four components these include the following Principal, Interest, Taxes and Insurance. Some lenders require 2-3 months PITI reserves in order for your loan to be qualified. PITI reserves are several month cash reserves required by lender that borrowers must have at hand when closing on a mortgage loan. PITI stands for principal, interest, taxes and insurance.

A 6-month PITI reserve is not as common as 2-3 month PITI reserves for owner occupied properties.  Also, seasoning is also expected – that is, the funds can’t show a history of several days but need to have been in existence for at least several months. Stocks and bonds, 401k and IRAs also qualify as PITI funds on reserve.

Be very careful when comparing monthly mortgage payments. Ask to see the payments in writing from each mortgage professional that provides you a quote. This way you can compare PITI payments with everything right in front of you so that there is no confusion. Sometimes, one lender may quote you a payment and even have a homeowners association due worked into your monthly PITI payment and another lender may not.

Some borrowers may not wish to have their payment include PITI. when shopping a mortgage loan, it is advised that the borrower maintain a sound understanding of the monthly costs of taxes and insurance, and look only at the principal and interest of the payment. This will avoid confusion between you and your loan officer or mortgage broker with respect to what you are actually paying on a monthly basis for your mortgage.

Hoped this helped, if you need any more answers feel free to Contact Us again

-Walter Grande

If you found this post useful or to your liking, please reward it by stumbling, digging or casting a vote on any other social media service you might like to use. Also don’t forget to subscribe to our blog, so you don’t miss out on any of our posts.