In recent months we are seeing deals fall apart because the Homeowner Association (HOA) or Condo Association (COA) dues are not being paid by owners that are facing foreclosure or units that have actually been foreclosed. When this happens, lenders take notice.
In fact, when delinquencies hit certain levels banks will not finance units in the development, and this include FHA restrictions. It is becoming a big issue, and making matters worse are the banks that are foreclosing on units, and then refusing to pay HOA and COA dues.
Another problem with delinquent association dues are the special assessments levied on those owners still paying their fair share.
Buyers Beware - If you are buying a home or condo, make sure your initial offer carries an addendum for your review of what percentage of owners are delinquent. For my clients, we simply make this determination with in our "free look" inspection period that usually runs from 10-20 days.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit www.FloridaHomes.PRO
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Thursday, August 13, 2009
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