Condo Approval

[karo81]

Hi,

I purchased a condo in Virginia Beach. I signed the contract in Sep07 and was supposed to move in in Feb08. I have been approved for the VA loan, but the builder, the infamous Armada Hoffler, says they're still waiting on VA/HUD approval. They said that they sent the paperwork to HUD in PA in mid Feb and that it had gotten to VA on March 25th. However, there is absolutely NO indication of anyone receiving it. I checked the HUD website and called the VA for the condo and neither place has it listed.

I really think the builder is lying to me and is trying to force me into a conventional loan using their lender. They keep using the phrase, "we will force you to use our mortgage company if yours needs even a week longer after we get the approval." Yet they've kept me waiting for months.

They had me submit my termination letter to my current rental, so now I'm forced out of there on the 25th and they said they "are doing me a favor" by allowing me to sign an early posession contract...but I'm feeling squemish about it as you can hopefully understand.

Does anyone have a suggestion on another source I can try to see if the information was ever submitted? Thank you!!!

 

[Marcia Langley]

karo,

Your lender should be able to check on the status of that in a jiffy. I'd depend on them.

If you are right about them trying to force you into a conventional loan, I'd be very leery of them.

Hopefully your contract with the builder has a financing clause for VA financing only. If so, you have an out if they can't get the complex approved.

Your problem is really outside what an appraiser can help you with.

Your lender should be able to help you. If you have a buyer's agent (not the seller's agent) then they can help you read your contract. If not, it should not cost much to have a lawyer review the purchase contract and tell you what your options are.

Good luck.

 

[Webbed Feet]

Karo,

It is time to lawyer up.

Webbed.

 

[Lobo Fan]

The San Antonio office handles condo approvals for HUD. There is also such a thing as a spot approval for a condo project. You can call HUD and wait on hold for three days, and matbe get an answer. Good luck.

 

[Walter Kirk]

Run to a real estate lawyer!

 

[toddmallard]

The contract was probably never read and just signed. I have seen this before in new communities. The contract probably has you over a barrel. It probably states that you will have to go with their finance company if yours does not give an approval by a certain date. Who is placing it thru the VA. Is it the builder ?. If it is, say good bye to your down-payment.