muckyouraces
Posts:3
 |
| 09/05/2008 1:07 PM |
 Alert
|
Why would some condos not be FHA approved? I have seen many condo communities for sale that say "not FHA approved" in the listing? I have asked the selling agent why it is not FHA approved and the BS artist said something about the HOA "working out financing." WTF???
Any reasonable answers out there? |
|
|
|
|
|
|
Goingup?
Posts:156
|
| 09/05/2008 1:24 PM |
Alert
|
Many of the condos were converted apartment buildings and were sold during the peak (2004-2005).
Forclosures are rampant in these buildings.
Prior to forclosure and through out the process owner stops paying HOA's.
Bank is NOT responsible until forclosure process is complete and they take ownership.
The bank is NOT responsible for back HOA dues.
Because of this reason, the HOA's in these communities are seriously underfunded.
The possibility of LARGE assesments in the near future lums large.
So...if you buy a 200K condo with 20% down and it drops in value 10% over the next year (possible) and then the HOA hits you for a 40K one time payment to catch up with their financing the odds are you'll walk.
And that's what the banks are worried about. |
|
|
|
|
muckyouraces
Posts:3
|
| 09/05/2008 2:29 PM |
Alert
|
"and then the HOA hits you for a 40K one time payment to catch up with their financing"
How is that even legal? How could the HOA "hit up" a new homeowner for something like that? I would just say "no thank you, go to h%ll!"
What could they do? The HOA can't sue for money from homeowners that they never agreed to so where would you come up with a hypothetical story like that? |
|
|
|
|
UnsureBuyer
Posts:212
|
| 09/05/2008 2:38 PM |
Alert
|
| troll |
|
|
|
|
ScottSD
Posts:162
|
| 09/05/2008 2:41 PM |
Alert
|
| a building also has to be more than 50% owner occupied to be FHA approved. |
|
|
|
|
Goingup?
Posts:156
|
| 09/05/2008 7:37 PM |
Alert
|
50% owner occupied is true, as far as I know. But lenders appear to be shying away from condo lending for other reasons. Those other reasons consist mainly of underfunding reserves of the HOA.
You can't just decide on your own to not pay an HOA assessment.
Say the community has an elevator that needs replacing every 20 years. The HOA would be expected to put 5% every year into a reserve fund. That is only fair, since those showing up in the 20th year shouldn't have to bear the entire cost.
Everything that's owned by the HOA has a lifespan and reserve fund to replace it. The numbers are audited and suppose to be realistic.
But if the HOA runs short of cash the first thing that gets shorted are the reserve funds.
Eventually it gets noticed, and the only way to "catch up" is to do one time assesements. I was at Horizons when the HOA discovered Bosa shorted our reserves to the tune of around 200K. The one time assesement came to around 1K per unit, give or take.
Once the HOA approves the one time assesement it's not an optional payment. It can be collected just like any other HOA debt. |
|
|
|
|
stella
Posts:360
|
| 09/07/2008 11:43 PM |
Alert
|
| If HOA failures were a chronic problem I'd think we'd be reading about it more often. I imagine that one reason that the foreclosure laws are 90 days are so that this doesn't drag on to hurt the HOA and other parties that have an interest in being paid. |
|
|
|
|
brokerbob
Posts:1
|
| 09/14/2008 11:38 PM |
Alert
|
| Remember that HOA's are not "born" as FHA approved. It is a certification that the FHA will grant after the fact, assuming that the association meets all of their guidelines. For example, there can be no pending litigation in the project, no discrimination, no non permitted uses, and NO assessments or pending assessments as noted above. |
|
|
|
|
Brian
Posts:2276
|
| 09/14/2008 11:45 PM |
Alert
|
We are going to read about HOA problems more often.
Florida HOAs are replete with problems. We will get our fair share in San Diego also. |
|
|
|
|
punstress
Posts:133
|
| 09/15/2008 12:00 AM |
Alert
|
[quote]Posted By Goingup? on 09/05/2008 7:37 PM
I was at Horizons when the HOA discovered Bosa shorted our reserves to the tune of around 200K. The one time assessment came to around 1K per unit, give or take.
[/quote]
Why didn't the HOA sue Bosa? |
|
|
|
|
Brian
Posts:2276
|
| 09/15/2008 12:44 AM |
Alert
|
dchestney posted on
another thread about special assessments at his building.
As buildings get old, special assessments will be the norm. At my friend's place in Chicago, the special assessment was $7,000 per window and he has 16 windows = $112,000. It's an old building.
-------------------
dchestney
09/13/2008 7:49 PM
Because questions were raised back in March about the Del Prado Condominiums (adjacent to Mi Arbolito), I thought I would update that as well for those with an interest.
The special assessment of $15,000 per unit was passed by homeowner vote earlier this week, so the proposed updating of the front entry, lobby, party room, gym, guest suite (adding a second one), HOA office, and residence hallways will move ahead in stages over the next 12-18 months. The vote was 38-18, with 10 units not voting.
|
|
|
|
|
title
Posts:20
|
| 09/15/2008 9:13 AM |
Alert
|
| If anyone is looking for a list of approved FHA condo's let me know. If FHA approved is your critera and your looking to buy it will make your life much easier. No charge, |
|
|
|
|
jackjack
Posts:155
|
| 09/15/2008 9:22 AM |
Alert
|
[quote]Posted By title on 09/15/2008 9:13 AM
If anyone is looking for a list of approved FHA condo's let me know. If FHA approved is your critera and your looking to buy it will make your life much easier. No charge, [/quote]
Can you just post a list of FHA approved condos downtown? Thanks, |
|
|
|
|
tpc
Posts:507
|
| 09/15/2008 9:44 AM |
Alert
|
| Everyone-good posts. A real contribution to peoples real estate education, including mine. No bs. no guessing. Good, good, good. |
|
|
|
|
title
Posts:20
|
| 09/15/2008 9:45 AM |
Alert
|
no,
shoot me a email to tryplanbe@gmail.com and I will get it over to you. |
|
|
|
|
andyinsdca
Posts:20
|
| 09/15/2008 9:56 PM |
Alert
|
| I suspect that a big part of the problem is that the HOA reserves are severely depleted and, iirc, there is some minimum that the HOA has to have on hand before FHA (or even a conventional loan) will finance. |
|
|
|
|
chrismuntz
Posts:1
|
| 09/16/2008 12:48 PM |
Alert
|
Heres a link to the FHA approved condo list. https://entp.hud.gov/idapp/html/condlook.cfm
|
|
|
|
|
Brian
Posts:2276
|
|
kat
Posts:55
|
| 09/16/2008 1:05 PM |
Alert
|
| After being president of an HOA for 5years, the problem is the laws. You can't even hire a homeowners who are licensed and would do the work for nothing or cheap, because it may be a conflict of interest. You spend more money in management fees then anything else. Even if homeowners wanted to do the landscaping on there own, with all the blood sucking attorneys, one injured person and the HOA is sued. It is ridiculous. What ever happen to hiring a kid to do your lawn. Oh thats right, he gets a cut and the parents sue you for $100,000, but the same parent might complain that no one will hire there kid either. |
|
|
|
|