Berman Rosenbach, P.C. News & Events

Tuesday, December 29, 2015

A Challenge From Too Many Condominium Tenants

This firm represents a small condominium association in which unit owners have experienced difficulties in selling or refinancing their units because a substantial number of the units are occupied by tenants. The high number of tenant occupants create more demanding requirements from a mortgage underwriting perspective, which means that it is harder for someone to get a mortgage to buy a unit or to refinance. And these more demanding underwriting requirements are applicable not only to tenant-occupied units but even to owner-occupied units. We have just seen this problem recently in connection with representing a buyer of a small (four units) condominium unit, where, once again, we saw that there were difficulties in our client getting a mortgage because three of the four units are occupied by tenants. Bottom line: if you are buying into a small condominium (let's say, without being exact, less than 20 units), you should find out if so many of the units are occupied by tenants that there will be a problem for you to get a mortgage or – in the future – that your prospective buyer will have the same problem.

Based in Bernardsville, NJ Berman Rosenbach, P.C. serves the surrounding areas including but not limited to; Morris County, Somerset County, Hunterdon County, Essex County, Union County and all Federal Districts Courts.

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