What if the project status is unknown or unclear?
Unclear project status is a blocker. The file will stall until project status is confirmed because the review path depends on it. If you don't know whether the project is new, newly converted, or established, you can't honestly tell the borrower what path the file will take. The file sits in limbo until status is clarified.
Why it's not always simple
Project status seems like it should be straightforward, but it's often ambiguous. The issue can be:
- Conversion dates are unclear or span multiple phases
- Documents might state different establishment dates
- The property might have been renovated extensively, making "new vs. established" unclear
- Different agencies and lenders define "newly converted" with different timelines
- The HOA questionnaire might not clearly state the status
- Project status might be disputed or subject to interpretation
Even getting a clear answer from the HOA can be difficult — property managers sometimes aren't certain about official project status.
What people usually miss
People often assume the HOA questionnaire will clarify status. What usually gets missed:
- The questionnaire might not ask about status clearly
- The property manager's answer might be vague or incomplete
- Getting a clear, definitive project-status answer might require follow-up calls or documentation review
- Not prioritizing the status question early enough, so the file gets deep into processing before the gap is discovered
- Assuming the project "looks" established based on appearance, without confirming actual status
- Missing that project status might need to be verified from original project documents or government records
The real problem: project status is a gate question, but it's often treated as a secondary detail.
Example
A processor has a file that's been in preliminary processing for three weeks. The loan officer hasn't clearly confirmed whether the project conversion was 4 years ago or 6 years ago, and the questionnaire was vague on the topic. When the file reaches the lender, the lender needs a definitive answer before proceeding. The processor has to go back to the property manager for clarification, costing another week. If project status had been confirmed in the first phone call, this delay could have been avoided.
If this is a real file
If project status is unclear, stop and clarify it before doing much else. It's a gate — the entire path depends on it. Don't assume documents will be clear; you might need to ask directly.
If you want to quickly understand whether your project status is truly confirmed and what that status means for your file's path, you can run a 60-second pre-screen.