Downtown Condos

[condogrrl]

Since I follow the downtown condo market too, I am concerned with the financial health of the HOAs in these buildings with foreclosures. How many owners are not paying their HOA assessments? Certainly, if they are behind on their mortgages, they are not paying their HOA. And when a foreclosed condo is sold by the bank, does the bank pay the HOA for dues owed by the previous owner?

I once owned in a building whose HOA was almost broke. That’s the main reason I sold in 2005 and have rented ever since.

[Pasadena Broker]

http://piggington.com/hoas_in_trouble

It’s not a good thing to be the last man/woman standing in this situation.

[Pasadena Broker]

http://piggington.com/hoas_in_trouble

It’s not a good thing to be the last man/woman standing in this situation.

[Pasadena Broker]

http://piggington.com/hoas_in_trouble

It’s not a good thing to be the last man/woman standing in this situation.

[Pasadena Broker]

http://piggington.com/hoas_in_trouble

It’s not a good thing to be the last man/woman standing in this situation.

[Pasadena Broker]

http://piggington.com/hoas_in_trouble

It’s not a good thing to be the last man/woman standing in this situation.

[SD Realtor]

Condogrl there is even more concern about the HOA then you brought up. The client of mine who is interested in the downtown area is an attorney. He has found that some of the current projects that are less then 10 years old are indeed having litigation regarding construction defects. The larger problem here is that the developers that are defendants may not have any money left so even if the HOA wins the lawsuit, if the developer is broke or is structured in such a way as to be able to shield the assets, then the HOA is on the hook for whatever needs to be remedied in the building. This (in some cases) can be big dollars. Now as a homeowner you may be on the hook for an assessment, perhaps a non trivial assessment.

Is this happening alot? No. Is this particular client perhaps a little over paranoid? Yeah a little but he is an attorney and he is simply covering all possibilities. Not a bad idea.

SD Realtor

[SD Realtor]

Condogrl there is even more concern about the HOA then you brought up. The client of mine who is interested in the downtown area is an attorney. He has found that some of the current projects that are less then 10 years old are indeed having litigation regarding construction defects. The larger problem here is that the developers that are defendants may not have any money left so even if the HOA wins the lawsuit, if the developer is broke or is structured in such a way as to be able to shield the assets, then the HOA is on the hook for whatever needs to be remedied in the building. This (in some cases) can be big dollars. Now as a homeowner you may be on the hook for an assessment, perhaps a non trivial assessment.

Is this happening alot? No. Is this particular client perhaps a little over paranoid? Yeah a little but he is an attorney and he is simply covering all possibilities. Not a bad idea.

SD Realtor

[SD Realtor]

Condogrl there is even more concern about the HOA then you brought up. The client of mine who is interested in the downtown area is an attorney. He has found that some of the current projects that are less then 10 years old are indeed having litigation regarding construction defects. The larger problem here is that the developers that are defendants may not have any money left so even if the HOA wins the lawsuit, if the developer is broke or is structured in such a way as to be able to shield the assets, then the HOA is on the hook for whatever needs to be remedied in the building. This (in some cases) can be big dollars. Now as a homeowner you may be on the hook for an assessment, perhaps a non trivial assessment.

Is this happening alot? No. Is this particular client perhaps a little over paranoid? Yeah a little but he is an attorney and he is simply covering all possibilities. Not a bad idea.

SD Realtor

[SD Realtor]

Condogrl there is even more concern about the HOA then you brought up. The client of mine who is interested in the downtown area is an attorney. He has found that some of the current projects that are less then 10 years old are indeed having litigation regarding construction defects. The larger problem here is that the developers that are defendants may not have any money left so even if the HOA wins the lawsuit, if the developer is broke or is structured in such a way as to be able to shield the assets, then the HOA is on the hook for whatever needs to be remedied in the building. This (in some cases) can be big dollars. Now as a homeowner you may be on the hook for an assessment, perhaps a non trivial assessment.

Is this happening alot? No. Is this particular client perhaps a little over paranoid? Yeah a little but he is an attorney and he is simply covering all possibilities. Not a bad idea.

SD Realtor

[SD Realtor]

Condogrl there is even more concern about the HOA then you brought up. The client of mine who is interested in the downtown area is an attorney. He has found that some of the current projects that are less then 10 years old are indeed having litigation regarding construction defects. The larger problem here is that the developers that are defendants may not have any money left so even if the HOA wins the lawsuit, if the developer is broke or is structured in such a way as to be able to shield the assets, then the HOA is on the hook for whatever needs to be remedied in the building. This (in some cases) can be big dollars. Now as a homeowner you may be on the hook for an assessment, perhaps a non trivial assessment.

Is this happening alot? No. Is this particular client perhaps a little over paranoid? Yeah a little but he is an attorney and he is simply covering all possibilities. Not a bad idea.

SD Realtor

[Aecetia]

I live in an area where there is an association and when the homes were being built, during the early 90’s, they were taken over by 3 different builders. There were also some problems and an eventual lawsuit where we had to sue the 3 different builders. There was a small one time settlement eventually, but I would have to say, the biggest winners were the lawyers. I know this is no surprise to any of you. I would be very wary of any situation where there are known on going problems with anything in the structure or even the grounds. Naturally, when we moved in no one was aware of any problems. After a 20 year flood, some of the problems became evident. Another issue that was misrepresented to us as buyers was that when the entire development was built out, then the association fee would be under $150. a month. It never has been and it has been increased a couple of time. I would recommend that everything be in writing and witnessed.

[Aecetia]

I live in an area where there is an association and when the homes were being built, during the early 90’s, they were taken over by 3 different builders. There were also some problems and an eventual lawsuit where we had to sue the 3 different builders. There was a small one time settlement eventually, but I would have to say, the biggest winners were the lawyers. I know this is no surprise to any of you. I would be very wary of any situation where there are known on going problems with anything in the structure or even the grounds. Naturally, when we moved in no one was aware of any problems. After a 20 year flood, some of the problems became evident. Another issue that was misrepresented to us as buyers was that when the entire development was built out, then the association fee would be under $150. a month. It never has been and it has been increased a couple of time. I would recommend that everything be in writing and witnessed.

[Aecetia]

I live in an area where there is an association and when the homes were being built, during the early 90’s, they were taken over by 3 different builders. There were also some problems and an eventual lawsuit where we had to sue the 3 different builders. There was a small one time settlement eventually, but I would have to say, the biggest winners were the lawyers. I know this is no surprise to any of you. I would be very wary of any situation where there are known on going problems with anything in the structure or even the grounds. Naturally, when we moved in no one was aware of any problems. After a 20 year flood, some of the problems became evident. Another issue that was misrepresented to us as buyers was that when the entire development was built out, then the association fee would be under $150. a month. It never has been and it has been increased a couple of time. I would recommend that everything be in writing and witnessed.

[Aecetia]

I live in an area where there is an association and when the homes were being built, during the early 90’s, they were taken over by 3 different builders. There were also some problems and an eventual lawsuit where we had to sue the 3 different builders. There was a small one time settlement eventually, but I would have to say, the biggest winners were the lawyers. I know this is no surprise to any of you. I would be very wary of any situation where there are known on going problems with anything in the structure or even the grounds. Naturally, when we moved in no one was aware of any problems. After a 20 year flood, some of the problems became evident. Another issue that was misrepresented to us as buyers was that when the entire development was built out, then the association fee would be under $150. a month. It never has been and it has been increased a couple of time. I would recommend that everything be in writing and witnessed.

[Author]

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