homeowners asscociation question

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Apr 26, 2002
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#1
for anybody who knows, i might purchase a townhouse with an hoa fee of 197/month. i found out from my lender that tha hoa is in tha negative about 35,000. what could happen to tha homeowners if there is a lien put on tha properties, or would there ever be a lien put on? should i even get this townhouse? thanks. fold.
 
May 15, 2002
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#2
interesting question - how does the hoa turn negative? i usually hear liens being placed the other way around but never this. Guess I can ask some people tomorrow.
 
Apr 26, 2002
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#3
year, thanks ac, i need a decision by tomorrow. wut i thought was hoa's were supposed to keep a reserve. also, i've never heard of a homeowner losing his house cuz tha hoa was in tha negative. but thanks agayne. fold.
 
May 15, 2002
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OK i just asked my roommate who owns a condo and pays hoa fees and he said his property manager didn't keep reserves so when it came time for improvements, he got a bill to pay for it.

so I think if there's no reserves, expect to come out of pocket if theres any big repairs/expenses.

if anyone knows differently, please contribute
 
Apr 26, 2002
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#5
AC Transit said:
OK i just asked my roommate who owns a condo and pays hoa fees and he said his property manager didn't keep reserves so when it came time for improvements, he got a bill to pay for it.

so I think if there's no reserves, expect to come out of pocket if theres any big repairs/expenses.

if anyone knows differently, please contribute
yeah, i assumed that, really my worry is if there can be a lien put on MY t'house, if my HOA is in tha negative. i'm pretty sure they'll increase tha fee per month in due time, but i'm worried i could still lose my home if not paid. fold.
 
May 15, 2002
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nah i think the only way you can lose it if they put like an assessment bond(i think thats what its called) and you don't pay that. Then hoa will put a lien on you even though they're in the negative.

I think if the townhouse would be worth it if the price is right, i guess you need to know that you might have to come out of pocket if something comes up. A buddy of mine just had to drop like 15 g's to put in new windows cause the hoa wanted the complex to get replacement ones.
 
May 15, 2002
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#8
the HOA can place a lien on your property, i know they do it if you don't pay fees, i think they could do it if you don't pay for the assessment
 
Nov 24, 2003
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#9
Do you know why the HOA is in the negative? It makes a big difference whether its negative due to bad budgeting vs a recent expenditures or something of that nature...
 
Apr 26, 2002
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#10
AC Transit said:
the HOA can place a lien on your property, i know they do it if you don't pay fees, i think they could do it if you don't pay for the assessment
so........... ur sayin if tha association is in tha negative, then they can put an assessment bond on all tha homeowners to MAKE them pay to pay off THEIR debts? that's fucced up, there's GOTTA be some kinda protection for us homeowners, if that's tha case, y cant tha hoa jus keep hikin up their fees every month and make a killin off us. there's gotta be stipulations. but year, it's a pretty good investment. i'm comin out with about 30k in instant equity, but imma rent it out for bout an extra 200/month. fold.
 
Apr 26, 2002
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#11
Mr. Nice Guy said:
Do you know why the HOA is in the negative? It makes a big difference whether its negative due to bad budgeting vs a recent expenditures or something of that nature...
naw, i dont kno that. y would it matter anyways? cuz it'll tell me whether or not they're responsible? if not, then should it really matter to ME, if i should get tha prop or not? i mean, i gotta be protected somehow right? i don't even mind payin an additional 100/month if that's wut it takes, it's a good investment. lemme kno. fold.
 
May 15, 2002
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#12
T-Spoon said:
so........... ur sayin if tha association is in tha negative, then they can put an assessment bond on all tha homeowners to MAKE them pay to pay off THEIR debts? that's fucced up, there's GOTTA be some kinda protection for us homeowners, if that's tha case, y cant tha hoa jus keep hikin up their fees every month and make a killin off us. there's gotta be stipulations. but year, it's a pretty good investment. i'm comin out with about 30k in instant equity, but imma rent it out for bout an extra 200/month. fold.
I think thats the case - but don't take my word. I'd maybe ask your RE agent about this. Or even better talk to the jackass head of the HOA who got into this situation. Doesn't seem like a bad investment if the rent will cover the mortgage. If you make extra bread off that, it will be an addition to the equity you'll make from holding on to it over time.
 
Apr 26, 2002
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#13
AC Transit said:
I think thats the case - but don't take my word. I'd maybe ask your RE agent about this. Or even better talk to the jackass head of the HOA who got into this situation. Doesn't seem like a bad investment if the rent will cover the mortgage. If you make extra bread off that, it will be an addition to the equity you'll make from holding on to it over time.
yes siiiiiir. preesh ac, but yeah, c wut u can dig up tomorrow if u don't mind and jus pm wut u find out. mos likely i will jus go ahead, cuz tha way i c it, 25k isn't THAT much for tha hoa. if worse comes to worse, there's at least 20 buildings, with 4 units in each. if they HAVE to, they can jus increase tha fee 50/month and pay that debt off EASILY in a years time. jus have to make sure everyone in tha n'hood is game, but i don't c y not, if everyone can lose they shit due to a lien. but, year homie, thanks for ur time. fold.
 

Dana Dane

RIP Vallejo Kid
May 3, 2002
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#14
There are a few factors needed in order for you to make an educated decision-

#1- How many units in the complex?
#2- Can they show you a projected budget and a realistic plan to get out of debt?
#3- (As stated above) How did they end up in debt?
#4- What type of loan are you tryin to qualify for, because a lot of lenders out there won't touch this deal if the HOA is in a deficit. Deficits lead to litigation, and if there is litigition brought against the HOA, then it could get ugly for you.