So close to closing and the HOA Cert shows only 39% Owner Occupied

Help!  The property management company uses a very poor system to evaluate owner occupancy to put on condo certifications.  They go by the address the HOA bill goes to.  I know this is common practice, but it is killing a short sale that is so close to closing!

Can I require they use other means as the billing address being different from the property address can have so many different reasons.  For example, it could be a second home, in the case of elderly people they may have someone keeping their books for them, parents could have their children living in the property as it is very near several universities and a very obvious reason for not having the bill sent to the property are the heavy use of PO boxes these days.

Does someone have verbiage I can use to get the property management company be more diligent in providing correct owner occupancy numbers?  I've thought of threatening a law suit if I lose this transaction.  There are many lives involved here;

1. The seller may end up with a foreclosure on their credit if the escrow does not close.

2. The buyer will likely not qualify if rates go up more than where they are now.

3. The buyer will miss out on buying their first home in a community the love.

4. Two agents will not earn the commissions they earned through hard work and dedication to their clients.

Maybe I'm preaching to the choir here, but maybe one of you superstars can help me!  I'm wishing on a "superstar!!"

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My understanding is if condos are not more than 50% occupied by owners, that it's EXTREMELY tough to get a loan.  Any time I've encountered that situation, I've changed the listing to CASH OFFERS ONLY.

 

The problem is even if someone has their children living in their home, etc, it will be looked at like an "investment"property.  They must reside at the residence for it to be considred owner occupied.

 

One of my buyers right now is buying a home for his daughter.  HIS NAME WILL BE ON THE DEED but the bank is saying it's still looked at  like an investment.

Always check with your Lender for a condo listing at the time of your short sale listing.  I pretty much ONLY take cash offers for condos..too risky.  Lenders are very skittish in my area with Condos.   I have a great, local Lender and he has a list of condo developments that are high-risk for qualifying for loans..Cash on the barrel for condos right now..good luck.
Thanks for all the input.  The loan has been re-submitted with a request for an exception.  I know it's a long shot but the buyers are solid gold and this owner occupancy requirement is killing us!  I've got the listing "active" again trying to get back-up cash offers.

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