I bought this condo is 2010. This is a condo/townhouse. ( Not attached house - doesn't share wall ).
The builder went bankruptcy and the bank took the empty lot. Only about 20 units were built before he went bankruptcy. They took the lot and sold it to habitat humanity organization. They built houses for low income people. The 20 original units had HOA but it was dissolved in 2016.
Now we want to sell our house but the mortgage broker unable to process the paperwork for the buyer because they said if this is a condo. They need to have HOA. We either need to contact the HOA to reinstate or contact with real estate laywer to change the condo to the single family.
Can anyone please me an advice? Thanks!
Hi @Phuong Pham ,
A condominium is not a style of property but a classification of ownership. The condo definition means that you own the inside of your unit; drywall in. You don't own the land the unit sits on, the roof over your head or the paint on the outside of your property. You need to talk with your attorney to figure out if you can subdivide the property, and grant ownership of each piece of land to the owner of the unit that sits on the lot.
The other way would be to reestablish the HOA. Then bring the HOA up to FANNIE MAE financing standards.
OR fire sell it for cash. Because that's the only type of buyer that can buy a distressed condo.
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