Below is a review of the posts on Facebook and LinkedIn from the past week. You can check out the full posts by clicking on the links.
NOTE: remember that we now post every other day.
The posts on Sunday 8/9/2026, here and here, noted again that Condo buyers face new mortgage rules now under Fannie Me, Freddie Mac. Be in the know!
Yep, buying a condo with a mortgage has gotten more complicated on/after August 3rd. Mortgage lenders are as interested in the condo building as they are in the buyer. See our posts of Friday 4/3/2026, here and here, Thursday 5/21/2026, here and here, and Monday 8/3/2026, here and here, for background.
Fannie and Freddie (linked in the post) are the government-sponsored enterprises that purchase qualifying mortgages on the secondary market, so the new condo-lending policies that took effect Aug. 3 mean that some purchases will involve greater scrutiny by lenders. The potential buyer might have the best credit, but that is far from the end of the loan road. The new rules require that lenders look more closely at the association’s finances, reserve funding and building maintenance for some (ok, most) transactions.
Fannie’s March 18 letter to lenders (linked in the post) explains the intent of the new rules. But trade groups and loan experts are far from rosy, saying that the change is likely to cause delays in mortgage approvals and, in some cases, result in mortgage loan denials if a condo building fails to meet the new standards. See our posts Monday 8/3/2026, here and here, for what AD Mortgage, a mortgage wholesaler in FL, said and did and the basis for that.
FHFA did not respond to an email seeking comment.
Why condo lending rules have become stricter
Fannie and Freddie buy home loans from lenders and package them into mortgage-backed securities for investors. If lenders want to sell mortgages to Fannie or Freddie — and most do because it frees up capital to do more lending — then the loans must meet certain underwriting standards, whether for a condo or other type of home. It is those standards for condo mortgages that have now changed as far as Fannie and Freddie are concerned.
Buying a condo (or co-op) is generally less expensive than purchasing a single-family home. Median prices for each are noted in the post. As of 2023, there were about 8.6 million condominium units in the U.S. overall; that number has only increased over the years since then.
Despite that growth in condo units, the partial collapse of the 12-story Champlain Towers South condo building in Surfside, Florida, on June 24, 2021, which killed 98 people, has caused lawmakers and policymakers to tighten standards affecting condo purchases and financing. The National Institute of Standards and Technology (NIST), a government agency within the Commerce Department charged with investigating major building failures, released a report on the Champlain Towers collapse (which report is linked in the post). Other reports published in the aftermath of the collapse came to similar conclusions – again see the post.
The disaster prompted the Florida state legislature to enact condo reforms (including those noted in the post) with many of those reforms having spilled over into other states. Nationally, Fannie and Freddie tightened condo underwriting in the months after the Surfside collapse by making projects with significant deferred maintenance, critical repairs or certain special assessments ineligible for mortgages they would purchase or guarantee. Those changes were largely made permanent in 2023. So now what’s happened or still to come?
Limited reviews are being eliminated
In March 2026 Fannie and Freddie unveiled additional changes. Some, such as what is noted in the post, are intended to help reduce costs and expand access to insurance coverage for associations. Others are designed to reduce risk for homebuyers and lenders. And effective Aug. 3, one of those changes eliminated the limited, or streamlined, review that has been available (and popular) for certain condo buildings. Now, unless a project (condominium) qualifies for a waiver (defined in the post), many transactions will require a full review. And that means lenders will ask for more information in the areas noted in the post before the mortgage can qualify for sale to Fannie or Freddie.
Mortgage approval process could take longer
Roughly 40% of condominium purchases involving a mortgage have been made using a limited review but could now require a full review. This will probably lengthen the loan approval process, said Dawn Bauman, CEO of the Community Associations Institute, which represents condominium, homeowners association and housing cooperative communities. Bauman’s quote is in the post. What the Mortgage Bankers Association (MBA) said is also in the post.
However, the MBA noted that once a lender completes a full review and the project is in the [Fannie and Freddie] systems as approved, then a full review should not be required for every loan. (What is unknown is how long that full review will “last” for the condo project.)
Concern exists that loan applications could be rejected
The downside is that if a condominium project fails to meet Fannie’s or Freddie’s underwriting standards during a full review, the lender may deny the buyer a mortgage. How Bauman suggested that might play out, and what it means about the condo itself, is in the post.
But for buyers, a denial from one lender doesn’t necessarily mean the unit cannot be purchased. Alternatives, and cost differentials, are discussed in the post.
Further, the anticipated lag in the mortgage approval process could give cash buyers a leg up because they would be able to finalize a transaction much more quickly.
Required budget for reserve funds is going up
Aug. 3 and its changes are in the rearview, but the next change is coming. Effective Jan. 4, 2027, condo associations seeking Fannie or Freddie financing will generally need to set aside at least 15% of their annual budget in reserve funds for major repairs and replacements, an increase from the current amount (which is noted in the post).
What Fannie’s March 18 letter to lenders said about this change is in the post.
Community Associations Institute, Community Home Lenders of America and the National Association of Mortgage Brokers sent a letter to the Federal Housing Finance Agency on July 9, asking that the new financing requirements be delayed for a year. The basis for the requested delay is explained in the post.
TAKEAWAY: These changes affect everyone in the condominium space: buyers, sellers, and Associations (and their Boards). Work with a community association lawyer to make sure you understand the changes and how it affects your situation.
The posts on Tuesday 8/11/2026, here and here, explained that More Trust and Estate Disputes Are Becoming Business Litigation. All the more reason to work with the right attorney for YOUR estate planning.
Today’s trust and estate litigation is often not confined to trust and probate law. As family assets become more complex, disputes may require analysis of partnership law, corporate governance, contractual rights, tax planning, or real property law. The legal dispute may begin with a trust, but it may not end there. Courts increasingly find themselves resolving inheritance (probate) disputes that cross legal boundaries and look more like business litigation (which means that the attorneys involved must also be knowledgeable in those other legal areas).
These disputes reflect a broader change in the current nature of inherited wealth. As the “Great Wealth Transfer” accelerates, families are increasingly transferring not just homes and marketable securities, but also closely held businesses, partnership and LLC interests, commercial real estate, and other complex or illiquid assets. These assets may bring along governance rights, contractual restrictions, and more that don’t disappear just because ownership has passed to the next generation. While the transfer itself may occur through an estate plan, the disputes that follow increasingly arise from the legal and economic structure of the asset itself.
Tax consequences also may turn on how and when an asset was transferred, including those questions (noted in the post) that can materially affect the economics of a later sale or buyout. This raises important questions for families, fiduciaries, and advisers, such as how decisions will be made when successors disagree and the others listed in the post. Again, any attorneys involved in the matter must be knowledgeable not only in the estate planning and probate law, but also business, financing and other legal arenas.
Let’s look at an example: A settlor (the person who creates a trust) transferred fractional ownership interests of a real property asset directly to several beneficiaries while retaining 30% of the property in trust. There was no limited liability company or other entity governing the co-owners’ relationship. When the settlor died, the beneficiaries’ ownership interests were clear. But … the co-owners couldn’t agree on the use of the property, the allocation of maintenance and carrying costs, or whether the property should be retained or sold. Those disputes were compounded as noted in the post. So the estate-planning transfers succeeded but the litigation arose from the aftermath.
Lessons From Han
The problem (business litigation coming from estates or probate) isn’t limited to the above example. When trusts hold partnership or closely held business interests, disputes can quickly cross into those legal areas. A few California appellate decisions illustrate how estate-planning decisions involving these interests can later shape business disputes.
In the first such case, Han v. Hallberg (linked in the post), a partnership dispute ran headlong into trust law in 2019. Four dentists had formed a partnership to acquire, operate, and maintain their dental office building. Years later, the partners amended their agreement and expressly consented to Dr. Hallberg transferring his partnership interest to his living trust and substituting himself, as trustee, in place of himself individually as the partner under the agreement. When Hallberg died, the surviving partners argued that his death triggered the partnership agreement’s buyout-on-death provisions. But the court disagreed because Hallberg individually was no longer the partner at the time of his death. Rather, his trust was the partner, meaning that Hallberg’s death did not trigger the buyout provision.
Han teaches a broad lesson. A transfer to a trust isn’t necessarily neutral relative to an existing partnership agreement. An experienced attorney must review both to ensure that what is intended to occur will actually occur under both documents.
Copley Dispute
In Copley v. Copley, a 1981 trust administration dispute, the court had to examine a transaction involving stock in a closely held family corporation. Shares held by one trust were sold back to the corporation for $4.5 million. The trial court decided that the redemption price was too low and ordered relief adjusting the parties’ stock holdings and dividends. The remedial portion of the judgment was affirmed on appeal.
This case illustrates the reverse of the situation in Han: Evaluating the trustees’ fiduciary conduct required the court to confront the valuation and economic consequences of a corporate stock transaction.
Whereas Han moved from partnership law into trust law, Copley moved from trust administration into corporate ownership and control. While the equivalent of mirror images of each other, the cases illustrate why modern trust litigation crosses doctrinal lines.
Practical questions continue to confront fiduciaries, beneficiaries, and advisers, including when an illiquid asset passes to multiple beneficiaries, what happens if they disagree over its use, expenses, retention, or sale? And if a trust becomes a partner or shareholder, do the governing business agreements account for that ownership structure? And more as noted in the post. The answers may – and probably do – require analysis of a partnership agreement, corporate governance documents, contractual rights, or real property law. While the dispute may begin as a trust or estate matter, the legal and economic issues driving the litigation may increasingly resemble those found in a business breakup.
TAKEAWAY: Be prepared. Estate and trust litigation is becoming business litigation because the assets, ownership structures, and disputes themselves more frequently intersect with other legal areas. Work with an attorney experienced in estate and succession planning and business governance matters to ensure that the next generation inherits an asset and not a lawsuit.
The posts on Thursday 8/13/2026, here and here, were about ‘Continued to bill me’: How family could lose home over a $40 HOA fee. The family knew about the bill but refused to pay, so it grew and grew and grew (with attorneys fees). Playing ostrich with a condo/HOA usually does not work out well for the owner. Let’s take a deeper dive here …
An Ohio family is on the verge of losing their home to a homeowner’s association over a $40 returned check fee. The fee was imposed eight years ago and has ballooned to nearly $9,000 now. Can you do that math?
When Darrin Wargacki and his family moved into their new home in 2009 in Beckett Ridge, they had big plans. Wargacki’s quote is in the post. But the dream is now a nightmare.
In 2018, Wargacki wrote a $240 check for the HOA dues. It bounced. So, he wrote another check that cleared. But that was not the end of it. The HOA started to bill him a fee. Wargacki said that he never saw proof of the original bounced check (author’s note: but knew it bounced because he paid the amount again) and so he refused to pay the late fee on principle. That initial $40 non-sufficient funds fee had snowballed, with court documents showing that eight years of $50 late fees and attorney fees added up to about $2K. And so in September, the HOA filed to foreclose to collect the amount due.
Wargacki acted to take care of the problem – see the post for what he did. But then he got a bill for additional association attorney fees – another $6,350 – related to the collection. Wargacki says he can’t afford to pay that. What am HOA board member and its attorney said is in the post.
As foreclosures increase nationwide, do HOAs want to take people’s homes? Generally not – they just want what the owner should have paid (and that other owners have had to subsidize in the meantime). But enforcement is enforcement – see the post. And the Beckett Ridge Association is no stranger to foreclosures. The post notes how many times it has filed for foreclosure since 2016. But in most if not all of the cases, the HOA settled or dismissed the case after receiving the amount due from the owner. For Wargackii, that amount is now about $9,000 (instead of the $40 he decided not to pay on principle).
Wargacki was asked if, looking back on the situation, he wished he would have just paid. His direct quote is in the post.
Stay tuned. The case has been continued, with the HOA’s continuing attorney fees getting added to the Wargacki’s tab.
NOTE: the post includes an embedded video that is well done.
TAKEAWAY: Do not be an ostrich. Even if an owner does not agree, they should pay the amount the condo or homeowners association says is due and then argue about whether or not you that amount was validly due. If there is no payment, even if it was not due, the attorneys’ fees incurred by the association will probably be validly charged back to the owner.
The posts on Saturday 8/15/2026, here and here, were about estate planning law in Pennsylvania: what it is, documents, and probate.
Understanding Estate Law in PA
What Is Estate Law in PA? – It governs how a person’s assets should be managed, distributed, and taxed after they die and includes preparation of legal documents like wills and trusts, overseeing estate administration, and more as listed in the post. Pennsylvania’s estate law is found at Title 20 of the Pennsylvania Consolidated Statutes.
Why Estate Law in PA Matters – Effective estate planning guarantees that one’s wishes are respected, minimizes tax liabilities, and alleviates stress on the surviving loved ones. If a proper estate plan is not in place, Pennsylvania’s intestacy laws will dictate how assets are divided – and that may not be what you want. It is best to know the law and take proactive measures to safeguard your family and your legacy.
The Foundation: Wills and Trusts in Pennsylvania
Wills in Estate Law in PA – A will is the cornerstone of any estate plan. What Pennsylvania law requires in order that a will be valid is detailed in the post. While it’s not required to have witnesses, it is advisable, particularly under the situations mentioned in the post.
Self-proving wills, i.e., those that include a notarized affidavit, can simplify the probate process by providing proof of the will’s authenticity so that there is no need for witness testimony during probate.
Trusts in Estate Law in PA – Trusts are an effective way to manage and distribute assets without going through probate. In Pennsylvania, trusts serve various purposes, such as those listed in the post. Living trusts, in particular, enable assets to transfer directly to beneficiaries without court involvement, saving both time and money.
Wills vs. Trusts: A Quick Comparison – the post has a table comparing wills and trusts relative to whether probate is required, if the document is private, the effective date, and the status of asset management. Grasping the distinctions between wills and trusts is essential for effective estate planning in PA.
The Probate Process in Pennsylvania
What Is Probate? Probate is the legal process for managing a deceased person’s estate, ensuring debts and taxes are settled, and distributing assets to beneficiaries. In Pennsylvania, probate is overseen by the Orphans’ Court in the county where the decedent lived.
Steps in the Probate Process
1. Filing for Probate: The court validates the will (if one exists) and appoints a personal representative (executor or administrator).
2. Publishing Notice to Creditors: see the post for details.
3. Inventorying Assets: The executor identifies, collects/lists, and values the assets in the estate.
4. Paying Debts and Taxes: see the post for what this includes.
5. Distributing Assets: When this is done, and how, is also in the post.
Simplified Probate for Small Estates – Pennsylvania has a simplified probate process for estates valued at under $50,000, excluding certain assets like those noted in the post. Using this process can significantly decrease the time and cost involved in administering the estate.
Intestate Succession: When There’s No Will
If someone dies without a will (intestate), Pennsylvania law specifies how assets are to be distributed. The order of priority for such distribution is in the post. Not having a will can lead to unintended outcomes, thus the need for proper estate planning.
Inheritance Tax in Pennsylvania
Inheritance Tax Rates – Pennsylvania imposes an inheritance tax on most property transfers upon death. The rate varies based on the relationship between the deceased and the beneficiary as noted in the post. Becoming familiar with the rates may be crucial for effective estate planning and reducing tax liability.
Strategies to Reduce Inheritance Tax – Pennsylvania estate law allows for several strategies to minimize or avoid inheritance tax, including gifting assets during one’s lifetime (up to the annual exclusion limit), setting up trusts, and the other thigs listed in the post.
Working with an experienced estate planning attorney can help determine the best approaches for each person’s unique situation.
Powers of Attorney and Advance Directives
Powers of Attorney – A POA is a legal document that permits someone else (the “agent” to make financial or healthcare decisions on behalf of the principal. Pennsylvania law requires that specific “hot powers,” like the ones noted in the post, be explicitly included in the POA document. Likewise, prohibiting an agent from having certain powers may also need to be spelled out in the POA.
Advance Medial/Healthcare Directives – Advance directives, including living wills and healthcare POAs, ensure that one’s medical wishes are followed if they become incapacitated. These are essential parts of a comprehensive estate plan.
The Role of the Estate Planning Attorney
Navigating estate law in Pennsylvania can be tough, especially for larger or more complicated estates (including those involving business assets – see our posts of Tuesday 8/11/2026, here and here). An experienced estate planning and business succession attorney can provide invaluable advice and help ensure that your documents meet current laws and clearly reflect your wishes. The attorney can also assist in resolving disputes, minimizing taxes, and safeguarding assets for future generations.
Common Questions About Estate Law in PA
Do All Estates Go Through Probate? – No, not all assets are required to go through probate. Those that typically bypass probate are listed in the post.
How Long Does Probate Take in PA? – Usually it takes several months to over a year, depending on the estate’s complexity and any potential disputes.
Can Probate Be Avoided? – Yes, probate can often be avoided or minimized through careful planning including as listed in the post.
What Happens If Someone Challenges the Will? – If one or more provisions in a will is contested, the court will review the validity of the document, the testator’s capacity, and more as noted in the post. Legal representation is highly recommended in cases of a will contest.
Recent Changes and Trends in Estate Law in PA
Pennsylvania’s estate law occasionally changes. Staying updated on the changes (for example those discussed in our posts of Thursday 5/19/2026, here and here) is crucial for effective estate planning (as is working with an experienced attorney).
Secure Your Legacy with Estate Law in PA
Estate law in Pennsylvania is dynamic and crucial for every resident. By understanding the basics of wills, trusts, probate, and inheritance tax, you can work with an attorney to make informed choices that will protect your assets and support your loved ones.
TAKEAWAY: Death and incapacity are not laughing matters – contact an experienced estate and business succession planning attorney to help you secure your legacy and find peace of mind