Wise Property Solutions is a property management company which is the region’s leader in community association management- the only certified and accredited condominium association management and HOA management company with offices in Knoxville and the Tri- Cities, serving the Mountain South. At Wise Property Solutions, we are contributing to our client communities through our commitment to the industry’s best practices and ongoing professional development. Our team of highly trained property managers strives for an efficient, problem-free community with 100% Satisfaction Guaranteed.
Devoted exclusively to the management of community associations, our homeowners association and condominium managers understand the unique needs of each community. We are proud of both our growth and reputation for offering an unparalleled level of professional service. Our services equip and empower board members to effectively lead their associations.
“...By aligning our association with Wise Property Solutions we are allowing a professional organization with proper training, systems and knowledge to streamline our efforts...saving us time and money...giving more prompt service to homeowners,”
In January, Fannie Mae changed their mortgage lending guidelines. The company said that the maximum priority lien for community associations could be no more than six months. A recent revision to the policy “grandfathers in” states that had enacted legislation for longer priority liens prior to Fannie Mae’s announcement, such as Connecticut and Florida. What’s the overall effect on community associations?
When a unit is foreclosed and assets are liquated, rules determine the order that creditors receive payment. Community association assessments are liens that take priority over the mortgage. When funds are dispersed, the association is paid before the mortgage and other non-government liens.
Every responsible homeowner in the community has to bear the burden of extra expenses due to delinquent owners. Priority liens allow an HOA to initiate foreclosure if a homeowner fails to pay assessments, which protects the financial health of the association. But, priority lien laws to recover delinquent assessments vary greatly from state-to-state. The 2008 Condominium Act in Tennessee provides six months’ lien priority, so it doesn’t appear to run counter to Fannie Mae’s new policy.
The Community Association Institute (CAI) says that Fannie Mae doesn’t recognize that this policy adds a burden to those responsible homeowners who keep their assessments current. Most associations operate on a budget that relies on every assessment dollar to maintain the community and its reserves. Fannie Mae’s new policy now limits HOA assessment collections to a maximum of six months.
This policy could have serious financial consequences when a foreclosure requires a year or longer to complete. In addition to the short-term financial issues that associations can face during the foreclosure, Fannie Mae’s policy adds future negative consequences by limiting the priority lien timeframe. Even a three-month reduction in recovering assessments can make a big difference when every dollar counts.
This is why CAI is engaging its members to help state legislatures and members of Congress understand the detriments of this type of blanket policy. CAI evaluates the short and long-term impact of policies and laws for planned communities. You can count on them as your advocate.
Wise Property Solutions is a property management company serving East Tennessee with offices in Knoxville, TN and the Tri-Cities, TN-VA. Specializing in Condominium Association Management, Home Owners Association Management, HOA Management and Gated Community Association Management.
Tri-Cities, TN-VA: 423-926-7373
Johnson City, TN
And the surrounding areas/cities.
Knoxville, TN: 865-643-8989