In today’s lending environment, the accuracy and completeness of a condominium’s ownership-status data is critical to the success of loan underwriting, and can greatly affect the marketability and therefore market values of the homes within the homeowners association.
It is very difficult for an HOA manager to determine the precise percentage of homes which can be considered owner-occupied for loan underwriting purposes. Managers are simply not kept abreast of changes in occupancy from homeowner residency to rental status. They do what they can, but they know the occupancy percentages they report are only their best guesses.
Given the risk for misstating occupancy data, managers will often report conservatively, erring on the side of understating owner-occupancy where they are uncertain, and overstating investor ownership. However, the risk for overstating investor ownership can be just as detrimental to the HOA, as it can prohibit financing available to homeowners who wish to reside in the home, thereby, by default increasing investor ownership.
Association OnlineTM is here to help. AO can prepare an ownership audit, validating the occupancy of the homes in your condominium complex. One of several methods to reach assurance may be employed, given the HOA's structure, available data, and incidence of investor properties. AO’s arms-length status provides added comfort to the data’s integrity, giving credence to all parties that the information may be relied upon.
Contact AO today, and let us help you ensure your condominiums are receiving all the underwriting privileges available to them!