To PUD Or not to PUD That is the question...

[glenn walker]

They sent the title report, but the report didn't include a rider. I'll request that. Just to be sure - you're suggesting I ignore FNMA's definition of what qualifies as a PUD? It's what I've gone by all these years...

Thanks for the reply and the information.

Then ask why the Underwriter is insisting its a PUD ? Remember in voluntary projects some owner will go from not belonging to belonging and same with some new buyers. Since nobody ever knows if that articular owner is going t choose one way or the other. We have some where a new buyer will opt out but others opt in . They should have never removed the "deminimus pud" definition on Fannie Forms . Its in situations in which the
( common property has less than a 2% influence upon the value of the premises. The 2% rule of thumb is calculated by dividing the dollar amount of amenities by the total number of units within the development. Next Question is there a management company who collects and manages the small common amenities ? Who pays if th vehicle entry gate is broken ? Not trying to be a jerk but something is making this Underwriter believe this is a PUD or She is Bat SH**t crazy.

 

[Jack Crabb]

Then ask why the Underwriter is insisting its a PUD ? Remember in voluntary projects some owner will go from not belonging to belonging and same with some new buyers. Since nobody ever knows if that articular owner is going t choose one way or the other. We have some where a new buyer will opt out but others opt in .

I've asked. We'll see what happens.

As for this particular home owner, she's assured me that the development has no home owner's association and that she's never paid dues in the 8 years she's lived in the home.

 

[Carnivore]

Even if it is a PUD, it is likely an old one. That means you don't have to fill out everything in the PUD section.

 

[Fernando]

Even if it is a PUD, it is likely an old one. That means you don't have to fill out everything in the PUD section.

Old one New one, still a PUD.
I have this SFR neighborhood which pays something like $11/year but still a PUD.
I try to sneak it in not checking PUD but underwriter catches me sometimes. Then I have to put some comments what it covers. Not really sure what it covers....

 

[Carnivore]

Old one New one, still a PUD.
I have this SFR neighborhood which pays something like $11/year but still a PUD.
I try to sneak it in not checking PUD but underwriter catches me sometimes. Then I have to put some comments what it covers. Not really sure what it covers....

Your kind of thick sometimes. If the developer is still in charge of the PUD then you got to do lot more. If the Developer is not in charge of the PUD there is very little you have to do.

Mainly find out the dues and list out what the dues cover.

I live in a PUD. All ours did was take care of the Street lights. The City took us in and NOW they take care of the Street lights and streets. We use to pay it anyway small amount and have a Block Party once a year.

Good Grief!

 

[glenn walker]

I've asked. We'll see what happens.

As for this particular home owner, she's assured me that the development has no home owner's association and that she's never paid dues in the 8 years she's lived in the home.

If she is voluntarily not a member then she would not have ever paid any dues nor would she even know if there was a HOA who collected them as she would not receive billing or maintenance statements. So I believe her but that does not change the developments status. What if you asked a owner in there that does belong ? What answer would you get ? Throw it on your desk and after a few days your E-mail box will either be blowing up with some evidence or it will go away .

 

[Fernando]

Your kind of thick sometimes. If the developer is still in charge of the PUD then you got to do lot more. If the Developer is not in charge of the PUD there is very little you have to do.

Mainly find out the dues and list out what the dues cover.

I live in a PUD. All ours did was take care of the Street lights. The City took us in and NOW they take care of the Street lights and streets. We use to pay it anyway small about and have a Block Party once a year.

Good Grief!

It's only $11/year. Appraised value stays same using same comps.
Many appraisers like OP not aware of area being PUD.
If many appraisers/peers feel it's not a PUD, then call it a PUD until called out.
I don't make the rules.

 

[glenn walker]

It's only $11/year. Appraised value stays same using same comps.
Many appraisers like OP not aware of area being PUD.
If many appraisers/peers feel it's not a PUD, then call it a PUD until called out.
I don't make the rules.

Correct value is the same.

 

[Jack Crabb]

If she is voluntarily not a member then she would not have ever paid any dues nor would she even know if there was a HOA who collected them as she would not receive billing or maintenance statements. So I believe her but that does not change the developments status. What if you asked a owner in there that does belong ? What answer would you get ? Throw it on your desk and after a few days your E-mail box will either be blowing up with some evidence or it will go away .

Fair enough.

During this process, I sent the lender all 12 MLS listings that closed in the subject development within the past 24 months and the only 2 current (both contingent) listings in the development. All 14 of these included a property condition disclosure document completed by the sellers - all sellers checked "no" to the property being in a planned unit development. Seemed pretty clear to me...

Ah, the gray areas...

 

[Dublin ohio]

So I believe her but that does not change the developments status.

But it does not conform to Fannie requirements. If the dues are voluntary and membership is not required. It is not a Pud per Fannie. Period. Every pud I have dealt with has a pud declaration recorded. Spelling everything out. Including being able to enforce dues payment. Which means they can lien your property for past due dues. There are a number of voluntary neighborhood associations in my markets. Many of them use the money for maintaining the common entrance area. Plus neighborhood functions (Easter egg hunt, annual block party and the like). Not once have I called them a pud. I have only been questioned on a few. But once they were informed the dues were voluntary and there was not a true legal hoa. It went away. Just ask the lender to provide the pud docs you cannot find (because there are none).