In November 2016 WeMAR sent the first of several letters to HOAs and community associations whose governing documents contained language making certain association/community fees mandatory. Our letter notified these communities the language contained in their governing documents precluded FHA from insuring loans in their community. We suggested the association and their members begin a conversation to discuss if changes in language were desired.
You may read the letter we sent to associations as well as additional and ongoing posts regarding free assumability and its affects on property owners, communities and buyers at the links below:
Retirement Communities and FHA Loan Denials
FHA Free Assumability Clause and Loan Denials
FHA Free Assumability and the Sun Cities
What is FHA Free Assumability? And Why Should You Care?
Reverse Mortgage Daily-Obscure Regulation Halts Reverse Mortgages…
Free Assumability – Sun City Rec Center and Sun City West Meetings
Why is FHA Free Assumability an Issue with Reverse Mortgages?
FHA Free Assumability – Asking Questions a Good Idea When Borrowing Money
FHA Free Assumability – Language Clears the Path to FHA Loans
Is FHA Allowing Loans in Sun City? Maybe…
FHA Free Assumability – WeMAR Free Assumability Task Force Meets with Sun City Task Force
In the end, it is up to the property owners. They are the members of their associations. Each association has a method for property owners to solicit a change in the governing documents. There are real consequences to changing the documents and real consequences to not changing the documents. Each association, in conjunction with their owners, will need to assess and weigh the options in order to decide what is best for property owners and the community.
The WeMAR Free Assumability Task Force will be releasing several education pieces regarding Free Assumability within the next 30 to 60 days. Look for them here on www.weservgad.org, or ask your REALTOR®.