Condo buyers beware

[jpinpb]

Good article. We discussed this on a thread I started:
http://piggington.com/hoa_solvency_market_problems

I was taking to a neighbor in my complex about my favorite topic, the RE market. He proceeds to tell me about an acquaintance of his who lives in a condo complex in El Cajon. She has a dilemma. She is one of four people left who are paying HOAs.

Now unfortunately I don’t have details and he didn’t either, as in name of complex or how many units, etc.

The problem is all the other owners have defaulted on their loans, are stil living there, just not paying on the loan or HOAs. Banks have not foreclosed yet.

The real problem is the four owners who are making mortgage and HOAs are paying and are now getting regular special assessments which are getting very expensive.

Apparently they got a HUGE water bill assessment and they are in a bind b/c if they don’t pay, the water will be turned off, is what he was saying.

Can the water department do that?

We discussed this further, that if the bank eventually forecloses, the bank is obligated to pay the HOAs, right? But I guess whichever bank has the first loan, if they sell and get lower than what is owed to them, then the second lien holder and the HOAs are $hit out of luck.

So do these four owners continue every month to pay this very high water bill and other special assessments? They don’t want to walk and f/up their credit.

Very catch-22 situation. One more reason to hate HOAs, besides their military rules and regulations.

If this happened in EC, what’s to stop it from happening in other complexes that get real bad?

Also HOAs mentioned here:
http://piggington.com/escondido_listed_70_below

[jpinpb]

I’m wondering if things really start getting bad in Foreclosure Ranch or Del Servitude, don’t they have HOAs as well. Won’t the remaining people end up getting “special” assessments. As if it’s not expensive enough to live there.

Or what about the condos downtown. They’ve got a LOT of empty units.

[jpinpb]

I’m wondering if things really start getting bad in Foreclosure Ranch or Del Servitude, don’t they have HOAs as well. Won’t the remaining people end up getting “special” assessments. As if it’s not expensive enough to live there.

Or what about the condos downtown. They’ve got a LOT of empty units.

[jpinpb]

I’m wondering if things really start getting bad in Foreclosure Ranch or Del Servitude, don’t they have HOAs as well. Won’t the remaining people end up getting “special” assessments. As if it’s not expensive enough to live there.

Or what about the condos downtown. They’ve got a LOT of empty units.

[jpinpb]

I’m wondering if things really start getting bad in Foreclosure Ranch or Del Servitude, don’t they have HOAs as well. Won’t the remaining people end up getting “special” assessments. As if it’s not expensive enough to live there.

Or what about the condos downtown. They’ve got a LOT of empty units.

[jpinpb]

I’m wondering if things really start getting bad in Foreclosure Ranch or Del Servitude, don’t they have HOAs as well. Won’t the remaining people end up getting “special” assessments. As if it’s not expensive enough to live there.

Or what about the condos downtown. They’ve got a LOT of empty units.

[PadreBrian]

Yep, this isn’t just a “condo” thing, it’s a detached house thing as well. It’s a “If you pay an HOA…expect to pick up the slack if you don’t have neighbors”.

[PadreBrian]

Yep, this isn’t just a “condo” thing, it’s a detached house thing as well. It’s a “If you pay an HOA…expect to pick up the slack if you don’t have neighbors”.

[PadreBrian]

Yep, this isn’t just a “condo” thing, it’s a detached house thing as well. It’s a “If you pay an HOA…expect to pick up the slack if you don’t have neighbors”.

[PadreBrian]

Yep, this isn’t just a “condo” thing, it’s a detached house thing as well. It’s a “If you pay an HOA…expect to pick up the slack if you don’t have neighbors”.

[PadreBrian]

Yep, this isn’t just a “condo” thing, it’s a detached house thing as well. It’s a “If you pay an HOA…expect to pick up the slack if you don’t have neighbors”.

[Coronita]

I think the thing about  the HOA (being underfunded as a general problem) is probably more of an issue with attached homes than detached.

In attached communities, there is generally much more common area that needs to be maintained that isn't simply "nice to have things". For example: roofs, some utilities, things like elevators, common parking (for true "condos" versus townhomes, are considerable part of the maintenance (aside from you nice to haves like common rec center, pools,landscaping, gates for gated communitie).

In a lot of detached communities, I would say the HOA is mainly there to maintain "nice to have things". Essential/critical things like roofs, plumbing, utilities, etc are usually the responsibility of the individual home owners, so an underfunded HOA isn't going to directly affect those critical aspects of the home. Underfunded HOA, most likely will just afect t those nice to have things in a detached community (maintanence on landscaping, security gates etc).

Plus the level of HOA "involvement" in a detached community varies. In my particular location, our HOA dues are like $25/month. But the HOA really doesn't do much (they don't even do a good job enforcing CCRs), aside from a yearly easter egg hunt they put together in a community park. Other communities (for example Palacio in Carmel Valley) have a nice bigger HOA dues to maintain the gated community AND the golf course (on top of that, I believe that HOA is underfunded).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I think the thing about  the HOA (being underfunded as a general problem) is probably more of an issue with attached homes than detached.

In attached communities, there is generally much more common area that needs to be maintained that isn't simply "nice to have things". For example: roofs, some utilities, things like elevators, common parking (for true "condos" versus townhomes, are considerable part of the maintenance (aside from you nice to haves like common rec center, pools,landscaping, gates for gated communitie).

In a lot of detached communities, I would say the HOA is mainly there to maintain "nice to have things". Essential/critical things like roofs, plumbing, utilities, etc are usually the responsibility of the individual home owners, so an underfunded HOA isn't going to directly affect those critical aspects of the home. Underfunded HOA, most likely will just afect t those nice to have things in a detached community (maintanence on landscaping, security gates etc).

Plus the level of HOA "involvement" in a detached community varies. In my particular location, our HOA dues are like $25/month. But the HOA really doesn't do much (they don't even do a good job enforcing CCRs), aside from a yearly easter egg hunt they put together in a community park. Other communities (for example Palacio in Carmel Valley) have a nice bigger HOA dues to maintain the gated community AND the golf course (on top of that, I believe that HOA is underfunded).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I think the thing about  the HOA (being underfunded as a general problem) is probably more of an issue with attached homes than detached.

In attached communities, there is generally much more common area that needs to be maintained that isn't simply "nice to have things". For example: roofs, some utilities, things like elevators, common parking (for true "condos" versus townhomes, are considerable part of the maintenance (aside from you nice to haves like common rec center, pools,landscaping, gates for gated communitie).

In a lot of detached communities, I would say the HOA is mainly there to maintain "nice to have things". Essential/critical things like roofs, plumbing, utilities, etc are usually the responsibility of the individual home owners, so an underfunded HOA isn't going to directly affect those critical aspects of the home. Underfunded HOA, most likely will just afect t those nice to have things in a detached community (maintanence on landscaping, security gates etc).

Plus the level of HOA "involvement" in a detached community varies. In my particular location, our HOA dues are like $25/month. But the HOA really doesn't do much (they don't even do a good job enforcing CCRs), aside from a yearly easter egg hunt they put together in a community park. Other communities (for example Palacio in Carmel Valley) have a nice bigger HOA dues to maintain the gated community AND the golf course (on top of that, I believe that HOA is underfunded).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I think the thing about  the HOA (being underfunded as a general problem) is probably more of an issue with attached homes than detached.

In attached communities, there is generally much more common area that needs to be maintained that isn't simply "nice to have things". For example: roofs, some utilities, things like elevators, common parking (for true "condos" versus townhomes, are considerable part of the maintenance (aside from you nice to haves like common rec center, pools,landscaping, gates for gated communitie).

In a lot of detached communities, I would say the HOA is mainly there to maintain "nice to have things". Essential/critical things like roofs, plumbing, utilities, etc are usually the responsibility of the individual home owners, so an underfunded HOA isn't going to directly affect those critical aspects of the home. Underfunded HOA, most likely will just afect t those nice to have things in a detached community (maintanence on landscaping, security gates etc).

Plus the level of HOA "involvement" in a detached community varies. In my particular location, our HOA dues are like $25/month. But the HOA really doesn't do much (they don't even do a good job enforcing CCRs), aside from a yearly easter egg hunt they put together in a community park. Other communities (for example Palacio in Carmel Valley) have a nice bigger HOA dues to maintain the gated community AND the golf course (on top of that, I believe that HOA is underfunded).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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