Rush for Refinancing May Be Challenge for Condominiums
Interest rates fell below the psychological 5% last week, which led to a rush of homeowners looking to refinance. While this may increase liquidity for some homeowners it may result in an unforeseen challenge for condominium associations if the refinanced loan is backed by FHA. As of February 1, 2010 condominium associations must be approved as a whole and "spot approvals" are no longer allowed. If your association is not approved the refinancing rush may result in confusion and high pressure on your management team and boards to get approval quickly. For more information on the approval process watch our webinar or read recent articles.