HOA what percentage of delinquent is acceptable

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Submitted by maverick on August 3, 2012 - 11:25pm

We are reading all the disclosures now and received the HOA minutes. How much is reasonable for owners to be delinquent and what should be a red flag? Thanks.

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Personally, I would ignore
Submitted by svelte on August 4, 2012 - 10:03am.

Personally, I would ignore the 30 day delinquencies. They can be skewed for a variety of reasons and in some months can be quite high. A good example is when HOA fees go up - it can take several months for homeowners to adjust and therefore they will show up on the delinquent list for the delta between the old and new fee rate.

I would watch the 90 days or more category, and from my experience having 5% or less in this category is typical. 10% would start raising my eyebrows, and if you get much higher than that I would start asking questions.

Thanks svelte! This advice
Submitted by maverick on August 4, 2012 - 10:13pm.

Thanks svelte! This advice was extremely helpful.

More important is reserve
Submitted by no_such_reality on August 5, 2012 - 9:09am.

More important is reserve fund balances

I'd suggest asking a mortgage
Submitted by sdduuuude on August 6, 2012 - 10:40am.

I'd suggest asking a mortgage broker.

To qualify for a loan on a condo, they require the HOA to meet certain standards. I don't know what those standards are, but a good loan guy could probably help you understand what to look for.

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