Hi everybody, been a long time since I posted here. I have a weird situation that I'd like to reach out and see if anyone else has experienced.

I have a transaction thats a condo, I represent the buyer. The lender is BofA and its been a underwriting nightmare, as has been our experience with BofA lately. The management company of this particular condo association is also very difficult.

Anyways, on BofA's Condo Questionnaire there's a question pertaining to the nature of the association's agreement with the management company:

"Can the HOA cancel the agreement without penalty and with no more than 90 days notice with or without cause? Yes/No"

The condo management company refuses to answer this question, they state their legal department advises them not to answer the question and that no lender has ever given them an issue. Bank of America refuses to do the loan unless the question is answered...and the answer is "yes".

Now, I don't know enough about the nature of agreements between HOAs and management companies to know if thats a standard type termination clause or not. I have asked some other lenders with other banks, and I do know that so far BofA is the only bank that has this question on their questionnaire, but with tightening underwriting guidelines for condos especially...it likely won't stay that way.

I tried to explain to the person at the management company that failure to answer this question will in the least result in BofA, the second largest mortgage lender in the country to refusing to finance any units in the association, and as other lenders adopt this question it may spread from there. They don't care.

I am trying to reach owner-members of the Condo board of directors but am having limited success.

Any thoughts?

I have a question too for the condo experts.... got one where the association is insolvent. Have you had any luck getting any type of financing in this situation. I already know FHA financing is a NO NO.

No, if the condo association is insolvent its gotta be a cash deal in my experience...