I have HOA problems....
Hi BP,
I recently tried selling my townhome (CIC) and after pulling the disclosures I found out the 5/12 units are delinquent in paying their dues. As a result the buyers lender will not approve the loan. Apparently FMAC and FMAE won't approve if 15% or more of the homeowners are delinquent. Has anyone ever come across this? Are there any solutions? It's a small HOA composed of 3 buildings that are 4 units each. My building happens to be 100% in paying the monthly dues, anyway I can get my building out of the HOA? #brexit?
Thanks in advanced for any insights and guidance,
Lamar
The age old freeloader problem. Sorry to hear that.
I'd guess those owners that aren't paying have no near term intentions of selling? Perhaps in some cases by informing them of the impacts their actions are having you might affect some.
Hard to fix that one. I wonder if you get involved in HOA politics and look into some more short term dysfunction (teeth) to take legal action against those freeloading jerks, if that might clean things up.
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Originally posted by @Lamar Quinn:Hi BP,
I recently tried selling my townhome (CIC) and after pulling the disclosures I found out the 5/12 units are delinquent in paying their dues. As a result the buyers lender will not approve the loan. Apparently FMAC and FMAE won't approve if 15% or more of the homeowners are delinquent. Has anyone ever come across this? Are there any solutions? It's a small HOA composed of 3 buildings that are 4 units each. My building happens to be 100% in paying the monthly dues, anyway I can get my building out of the HOA? #brexit?
Thanks in advanced for any insights and guidance,
Lamar
Because of those delinquencies I would recommend having your Realtor put in the listing description that your unit is a non warrantable condo. Also, have the Realtor list that a Non-QM loan & Cash are the best purchasing options.
I hope this helps.
