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Aurora homebuyers may lose condos awaiting U.S. Department of Housing and Urban Development approval

Realtor describes battle as 'David and Goliath'
Aurora homebuyers may lose condos awaiting HUD approval
Posted at 6:26 PM, May 16, 2022
and last updated 2022-05-16 22:54:05-04

AURORA, Colo. — For more than a year, Christina Pritchard has been dreaming about the day her brand-new Aurora condo in Sorrel Ranch would be hers. She signed the contract in April 2021 and has been at the complex watching her home be built from the ground up.

"I have been working all the overtime in the world just to save up for the down payment," she said.

Pritchard was approved for an Federal Housing Administration (FHA) loan, and the single mom thought she had been doing everything right. That was until two weeks ago when her realtor learned the U.S. Department of Housing and Urban Development (HUD) had still not approved the building for FHA loans.

"We need help. We need someone to help us, and that's why we came to you guys," said Realtor Rachel Wallace, who said other buildings in the complex had been approved.

The reasons behind the delay are not clear, but it could cost several families their homes, Wallace said.

Pritchard's locked-in loan rate expires June 5, and she can't afford the new interest rates.

"Christina and I almost feel like this is a David and Goliath story because we're all kind of in arms together, fighting the federal government because of bureaucratic red tape," said Wallace.

The builder, Lokal Homes, confirmed in a statement to Contact Denver7: "Lokal Homes has been diligently trying to obtain HUD approval at Sorrel Ranch and has provided several responses to HUD’s request for more information. At this time, HUD has not provided an approval or requested further information as to the status."

Meanwhile, HUD released a statement as well, providing no timeline for the approval process: “We continue to work with the developer on the challenges with the condominium project’s approval. This issue will not impact any borrower with a mortgage that has already closed and has received an FHA insurance endorsement.”

Pritchard said she had already packed up her apartment, and now she said the worst part is not knowing if the federal government is going to help her or leave her without a home.

"I'm not just a number. This is my life that I've worked so hard to be able to buy a home for me and my son," she said. "It's having such a huge impact that I just think the story needs to be heard something needs to be done because something's broken within within the system."

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