A buyer is financing the purchase of a lakefront property in New Hampshire that relies on a private well and septic system. The lender is conducting due diligence on the property. Which of the following is NOT a typical lender concern specific to this type of New Hampshire property?
Correct Answer
D) Whether the seller has paid all outstanding condominium association fees before closing
Condominium association fees are relevant only for condominium properties. A lakefront property with a private well and septic system is described as a single-family home, not a condominium unit. Therefore, condominium association fee concerns are NOT applicable to this specific transaction. The other three options (shoreland restrictions, well water quality, and septic system condition) are all genuine and typical lender concerns for NH lakefront properties with private utilities.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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