Condo Questionnaire for bank

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Florida
I'm selling my apartment and I believe the management company for my condo association filled out the wrong information on the finacial questionnaire submitted to the buyer's lender. This wrong information caused the bank to deny the loan which killed my deal. When I pressed the condo manager for a copy of the questionnaire he reluctantly faxed it to me. I know some of the numbers are different on my copy based on what the loan officer told me. Unfortunately the loan officer will not fax me his copy so that I can compare the two because I am not his client. My question is if the manager faxed the bank a questionnaire with wrong information but faxed me the same questionnaire with the correct information isn't that illegal and if so can I sue the condo association for killing my deal?

 

[Paddy Reagan]

Lenders that periodically sell their loans into the secondary market ask condominium managers to complete HOA questionnaires. These include questions about such things as insurance coverage, reserves for captial repairs and replacement, etc. Two of the most critical of these questions are:

a. How many units in your condominium are owned by investors or are leased? If more than 40 percent of the units are investor owned, many lenders won't accept the mortgage.

b. How many (or what percentage) of the owners are more than 30 days past due on payment of their maintenance fees? If more than 10 to 15 percent of the owners fall into this category, many lenders won't accept the mortgage.

Unless your condominium is not adequately insured, there's not much else in the questionnaire to cause rejection.

It's not unusual for a lender to opt out of a loan based on these criteria. However, when this happens, most buyers simply go to another lender who isn't concerned about Fannie Mae and/or other standards, IE, those who tend to keep loans in their own portfolio rather than selling them.

If, as you suggest, a clerical error was made by the manager, an amended questionnaire can usually be submitted. Because lenders are plentiful who will write loans without these standards, it's unlikely that legal action would be worthwhile.

 

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Condo Questionnaire

Thanks for your reply. Actually the problem is (B) the number of outstanding payments due. The manager answered $80,000 when in reality it is only $10,000. It wasn't a clerical mistake, it was done on purpose because I've had couple of run-ins with this manager and this is his revenge. Of course there is no way for me to prove this unless I get the bank's copy of the questionnaire and even then, according to what you're saying, he can just claim it was a clerical mistake and get away with it. It's scary that condo associations and managers can have this much control over someone. My real question is: don't the documents have to be consistant? What he faxed the bank should have the same exact information as what he faxed me. If it doesn't isn't that fraud?

 

[Paddy Reagan]

If your condominium includes more than 50 units or has an annual operating budget of $100,000 or more, the manager must be a Community Association Manager licensed by the State of Florida. If you believe the manager provided false information to the lender you can file a formal complaint with the Florida Department of Business and Professional Regulation. Here's a link to help you:

http://www.myflorida.com/dbpr/lsc/condominiums/forms/complaint.pdf

Also, you may choose to write a letter to the lender offering details of the discrepancy. As an owner you are entitled to review the books and records of the association and can make your own determination of the number of delinquent owners and the total amount of the delinquency. FYI, the manager does sign the HOA Questionnaire, attesting to the accuracy of the information provided.