Worst case scenario for an underfunded HOA

[Coronita]

Dumb question. Does anyone have any knowledge about the worst case scenario for an attached community if the HOA is severely underfunded?

I understand that special(expensive assessments) maybe levied and things that need to be repaired can get ignroed. Is there anything worse? Can an HOA file for bankruptcy or such if they are running negative for a long time? Any examples of this happening…

Just curious. Have a few eyes on some condos that don’t look too pretty….

[Aecetia]

FLU,
This probably will not happen where you are looking, but we had a 20 year flood 2 years after we moved in(we live near Jamul). This flood washed out a secondary bridge and we had to sue the builder to build a new one. Well, there were three builders involved, so the attorneys won that one. I would check and see what kind of insurance the HOA carries. We were also assured when we moved in that the monthly dues would come down when it was built out and that has not happened either. We have been here 14+ years. Perhaps someone with a legal background can explain how to hold them to their promises….

[Aecetia]

FLU,
This probably will not happen where you are looking, but we had a 20 year flood 2 years after we moved in(we live near Jamul). This flood washed out a secondary bridge and we had to sue the builder to build a new one. Well, there were three builders involved, so the attorneys won that one. I would check and see what kind of insurance the HOA carries. We were also assured when we moved in that the monthly dues would come down when it was built out and that has not happened either. We have been here 14+ years. Perhaps someone with a legal background can explain how to hold them to their promises….

[Aecetia]

FLU,
This probably will not happen where you are looking, but we had a 20 year flood 2 years after we moved in(we live near Jamul). This flood washed out a secondary bridge and we had to sue the builder to build a new one. Well, there were three builders involved, so the attorneys won that one. I would check and see what kind of insurance the HOA carries. We were also assured when we moved in that the monthly dues would come down when it was built out and that has not happened either. We have been here 14+ years. Perhaps someone with a legal background can explain how to hold them to their promises….

[Aecetia]

FLU,
This probably will not happen where you are looking, but we had a 20 year flood 2 years after we moved in(we live near Jamul). This flood washed out a secondary bridge and we had to sue the builder to build a new one. Well, there were three builders involved, so the attorneys won that one. I would check and see what kind of insurance the HOA carries. We were also assured when we moved in that the monthly dues would come down when it was built out and that has not happened either. We have been here 14+ years. Perhaps someone with a legal background can explain how to hold them to their promises….

[Aecetia]

FLU,
This probably will not happen where you are looking, but we had a 20 year flood 2 years after we moved in(we live near Jamul). This flood washed out a secondary bridge and we had to sue the builder to build a new one. Well, there were three builders involved, so the attorneys won that one. I would check and see what kind of insurance the HOA carries. We were also assured when we moved in that the monthly dues would come down when it was built out and that has not happened either. We have been here 14+ years. Perhaps someone with a legal background can explain how to hold them to their promises….

[nostradamus]

Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.

[nostradamus]

Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.

[nostradamus]

Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.

[nostradamus]

Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.

[nostradamus]

Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.

[Coronita]

[quote]
Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.
[/quote]

Thanks. Some of the condo converts are pretty scary, with a lot of FB’s and HOAs seemingly underfunded.
Just wondering if a severe underfunding can trigger a snowball, in which underfunding->special assessment->difficult in selling -> lowered prices -> more FB buyers walking -> less occupancy –> even more underfunding. There are a few complexes i see that have a huge FB tenancy and a lot of sales that aren’t happening, and I’m guessing the HOA is underfunded. I’m just wondering when this landmine will blow up.

[Coronita]

[quote]
Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.
[/quote]

Thanks. Some of the condo converts are pretty scary, with a lot of FB’s and HOAs seemingly underfunded.
Just wondering if a severe underfunding can trigger a snowball, in which underfunding->special assessment->difficult in selling -> lowered prices -> more FB buyers walking -> less occupancy –> even more underfunding. There are a few complexes i see that have a huge FB tenancy and a lot of sales that aren’t happening, and I’m guessing the HOA is underfunded. I’m just wondering when this landmine will blow up.

[Coronita]

[quote]
Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.
[/quote]

Thanks. Some of the condo converts are pretty scary, with a lot of FB’s and HOAs seemingly underfunded.
Just wondering if a severe underfunding can trigger a snowball, in which underfunding->special assessment->difficult in selling -> lowered prices -> more FB buyers walking -> less occupancy –> even more underfunding. There are a few complexes i see that have a huge FB tenancy and a lot of sales that aren’t happening, and I’m guessing the HOA is underfunded. I’m just wondering when this landmine will blow up.

[Coronita]

[quote]
Hey FLU,

You can also call the property management co (not the HOA) and ask them how stable the complex you’re interested in, whether there are any liens, whether special assessments are being considered, what the vacancy is, and so on. I’ve been calling them for condos I’m interested in and they’ve all been very helpful and forthright in disclosing this info. It doesn’t answer your question but helps in the decision to buy in a certain complex.
[/quote]

Thanks. Some of the condo converts are pretty scary, with a lot of FB’s and HOAs seemingly underfunded.
Just wondering if a severe underfunding can trigger a snowball, in which underfunding->special assessment->difficult in selling -> lowered prices -> more FB buyers walking -> less occupancy –> even more underfunding. There are a few complexes i see that have a huge FB tenancy and a lot of sales that aren’t happening, and I’m guessing the HOA is underfunded. I’m just wondering when this landmine will blow up.

[Author]

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