Here are the Fannie Mae guidelines for legally non-conforming properties:If the Property's characteristics are legally non-conforming, you must:ensure the Borrower executes the Modifications to Multifamily Loan and Security Agreement (Legal Non-Conforming Status) (Form 6275);confirm whether, if fully or partially destroyed, the Property's Improvements can be fully rebuilt to the pre-casualty condition per current laws, zoning requirements, and building codes; and if the Property’s Improvements cannot be fully rebuilt to the pre-casualty condition, evaluate if the as-rebuilt Property will support the Mortgage Loan at the current Tier, and document your analysis in the Transaction Approval Memo.To assess the Borrower's ability to rebuild Improvements on a non-conforming Property to a level that will support the Mortgage Loan at the current Tier, you should consider: conducting a threshold analysis to determine the resulting actual amortizing DSCR if the reconstructed Improvements cannot be rebuilt as-is per current law; the likelihood of a casualty event (e.g., wind, earthquake, fire, flood, mine subsidence, etc.); the percentage of damage to the Improvements at which the Property’s jurisdiction will require the Property be rebuilt to current zoning and land use requirements (i.e., the destruction threshold); which Property characteristics the destruction threshold percentage applies to, such as market value, assessed value, replacement cost, or unit count; for Properties with multiple buildings, if the destruction threshold percentage applies to each building, or all buildings as a whole; the replacement cost to rebuild per current requirements for zoning, and land use; the Property’s continued marketability, and economic viability; the amount and type of Borrower-maintained insurance coverage required per Part II, Chapter 5: Property and Liability Insurance, Section 501.02C: Ordinance or Law Insurance; insurance loss proceeds payout, compared to increased rebuilding costs, including from building code changes, Americans with Disabilities Act compliance, and the municipality's local zoning requirements (e.g., green compliance for new buildings, etc.); the sufficiency of estimated insurance proceeds from ordinance or law insurance and other coverages to repay the Mortgage Loan in the event of partial or full casualty, or condemnation; and for a Tier 3 or Tier 4 Mortgage Loan, if requiring execution of the Limited Payment Guaranty (Form 6020.LPG) would mitigate the risk of the as-rebuilt Property not supporting a Tier 2 Mortgage Loan.

My uncle passed away and left his house to the family trust where my dad is the executer.

They might also want a fully-executed Operating Agreement showing who is allowed to open your bank account and sign checks on behalf of the entity.

Planning and careful execution should reduce your risk of delay.

But I get it from the company perspective I am sure they make quite a bit of money on their turn downs.. and  its a good way to filter the folks that think they can do it and have a plan with those that can actually execute.

While there are good operators out there, their will be plenty in this environment of rising rates, expanding cap rates, and not executing their business plans, that will loose all their investors money.

Macy's, a cornerstone of American retail, is seeing significant interest in the real estate it has put up for sale, a promising sign in a challenging market.

Success depends on execution.

The improvements boosted its market value, leading to a successful sale at $65,000 on 8/21/2024, showcasing our strategic approach and effective project execution.

We actually got quite lucky as COVID wild type strain mutated fast enough to become less harmful and so only 1.2 million Americans have died and only 7.1 million people around the world have died from it, so far.