no units are going to get through loan underwriting while that is the case
before someone can close escrow on a condo they have to show that the HOA has adequate insurance
I’m wondering what happens when the HOA’s insurance lapses – how do the mortgage holders/servicers of the individual units find out that the HOA no longer has insurance? – I’m guessing that they don’t
if I let the insurance lapse on my property the lender sends me a bill for the insurance that they purchased on my behalf
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I have always considered condos a less-than-ideal real estate investment – the current downturn is uncovering some condo issues that I had never considered – the relative price declines of condos vs single family residences is showing how the market values SFRs over condos – condos get hit first and HARD when real estate corrects
