FHA Condo Recertification Holding Up Closing

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P.S. from Michigan writes:

Dear Mister Condo,

I am a realtor and I am under contract to purchase a Condo unit with an FHA Mortgage.  During the mortgage prep process we discovered that the Condo Association had their FHA Certification expire.  They submitted their recertification paperwork on July 19th and we have heard nothing back as of yet.  Is there a way that we can contact someone to see when the recertification process will be approved?

Mister Condo replies:

P.S., I do not know of anyone you can contact at HUD, the governmental agency responsible for FHA certification and recertification for condominiums. The website says you can email sfadmin@hud.gov but I doubt you’ll get a human response. Patience may be your only option here. My understanding is that if everything is in order the recertification takes just as long as the initial certification (typically 30 – 60 days). However, that assumes that everything is in order and that there are no red flags or reasons for the recertification to be denied. If the July 19th date is accurate and all is in order, I would expect you to hear back before the end of September. You may already know that you can check online at https://entp.hud.gov/idapp/html/condlook.cfm by entering your search criteria. A quick check for the state of Michigan shows only 1,189 records showing the current FHA certification status of condo associations.

A local and helpful resource may be your local chapter of the Community Associations Institute (CAI). The Michigan chapter website is http://www.cai-michigan.org/. You might want to reach out to them to find out how long the process has been taking locally. Also, I have had success with National Condo Advisors (http://nationalcondoadvisors.com/PublicPages/Home.aspx). They charge a fee for their service of walking the condo through the process but can be well worth it if the condo is facing obstacles. Good Luck!

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