7,862,615
Yes. Prospective purchasers who drive trucks will find that they can not be parked in some communities.
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Nina Hollander, Broker
Charlotte, NC
4,582,043
I have had clients not consider a purchase based on HOA concerns and/or issues. There are some complexes that have poor reserves, non-owner occupancy restrictions, poorly managed and other reasons.
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Nina Hollander, Broker
Charlotte, NC
2,538,633
Good morning Jeff. Definitely a problem. If there is a pending case against the HOA and the lender's legal department feels that the insurance may not cover the suit, lenders will not lend in that complex.
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Nina Hollander, Broker
Charlotte, NC
2,224,473
We don't have too many neighborhoods with an HOA in my area. Thankfully I haven't seen this come up.
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Nina Hollander, Broker
Charlotte, NC
1,771,867
Yes, especially with CO-OP's and Condo HOA's that had not eliminated the 30 day first right of refusal which is key to an FHA loan, they will not accept it.
Have you ever seen a condo board that bought a condo because of that old law?
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Nina Hollander, Broker
Charlotte, NC
2,707,721
No, not as yet Jeff Dowler CRS ...and I hope that I haven't just jinxed myself
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Nina Hollander, Broker
Charlotte, NC
921,504
1. Insufficient reserves
2. Predominate ownership
3. Comfort pet
4. HOA suing management company but management company 'owns' all the amenities
5. Pending liability suit (injury/death) against HOA
It is soooo much fun.
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Jeff Dowler, CRS
Carlsbad, CA
5,877,189
5,112,371
I've not run into this with a buyer, but we always check HOA information first. And out state property disclosure statemets require disclosure of financial and litigation issues.
3,741,214
I've had buyers pass on condos with legal problems, especially if it's all about owners bickering.
597,572
Yes, lawsuits and funding issues are the two most common problems I've encountered.
6,416,959
823,679
3,986,308
1,231,853
Erie had a mixed-use property that was tied up in court for five years trying to. Resolve title issues
2,684,569
Liens from the HOA or CA, usually on foreclosures. Some Florida HOA's and CA's can be worse to deal with than the Banks.
765,973
Condos have been impacted by owner occupied numbers. There is a complex that won't allow a unit to be rented within the first year of purchase so no investors. There are some units that FHA won't loan on due to litigation as well.
5,583,328
1,157,791
Some buyers choose not to purchase a condo within a condo project after reviewing the status certificate.
3,167,489
The only issue is the HOA fees being so high it put the house out of the budget. Even when Reynolds Plantation's HOA went bankrupt and operated in BofA receivership for a year prior to a MetLife purchase of it we didn't have issues with buyers or sellers being able to close. Although some people did get (parden my language) screwed out of what they had been told were lifetime golf memberships.
1,505,913
Oh yes! HOA not fixing problems, lawsuits, funds issues... I've seen it all it seems.
1,728,056
Not lately, but with the hurdles lenders are throwing at buyers, no question we will be seeing this.
3,349,239
No ... because all of that homework/investigation is done upfront. I've known sellers with issues due to lack of adequate funding in the HOA reserves. We settled that by the seller reducing the price to compensate for it.
2,784,536
Those reasons you mentioned Jeff Dowler CRS ? All deal killers to be sure
4,347,292
1,466,257
Jeff Dowler CRS I had a problem with an HOAonce where their attorney sent my seller threathening letters they were going to put a lien on the property for some minor repairs. The seller had intended all along to fix the one broken window and a dislodged rain gutter. The HOA did their final inspection and signed off on it and we closed.
This is an example where the HOA doesn't enforce any rules until it comes time for the seller to put the townhome up for sale. Then they have their attorney send these letters to intimidate the seller.
4,800,132
I had one buyer turned down because of an old misdemeanor on his background check!
400,356
Yes. There's a local condo community that lost a lawsuit against a vendor. The HOA immediately filed bankruptcy and cash transactions were just about the only thing possible.
There was one non-cash transaction, which was Fannie Mae Homepath which was not concerned with the bankruptcy.
After the bankruptcy, it was still difficult to obtain a loan on a property there, but buyers who put down 25% or greater could buy because the condo questionnaire was not necessary.
The other stuff like the HOA delinquency rates and non-owner occupancy rates pop up now and again.