All Forum Posts by: Don Avery

I just talked with the manager of the HOA. It's a little better that I was told, but not much. There are 16% foreclosed condos in the complex. My wife wants to go through with it. I have checked around and am waiting replies. One things for sure, if this goes through I lost my 5.75% for a 30 year fixed.

It's only going to take about 2K to fix it up. My loan company had the managment company fill out a form. This is when they told me they could not write PMI because the 25% foreclosed units. I am trying to get a copy of this form. I think your right about it being cheaper a year or two from now. But I'm trying to look ahead ten years and this is a waterfront condo. My only concern is our ability to handle the increased HOA fees until this market starts a comeback. Can I weather this storm? Here is another question, with this new info I have about the 25% forelcosures could I re-negiotiate the contract? Since my loan company cannot complete this loan, I know I can walk away, but could I get a better deal? Can I convince Countrywide to cut me a better deal and give me loan? Anyone know if this has been done before? I mean what is Countrywide going to do with this property? Traditionally, they reduce the price 10% and put it back on the market. Why can't I ask for the 10% reduction?

Actually we are purchasing for 35% of the price it sold for in 2006. But this unit is a little distressed, so an average of 50% could be close. I'm not really worried about resale (right now), as we plan to retire to this condo in 12 years. We would like to use it seasonally until then. Is there a deal to be struck with this unit or should I walk away? There are alot of unknown variables. I did some checking and it looks like this unit could rent for about 1.5% of the purchase price.

I've actually done some of this. It appears from the tax records that only 4-5 of the units are currently owned by banks. This would mean that 45, of the 193 total, are still going through the foreclosure process? I am still waiting for my loan officer to send me the form that states the current foreclosure rate in the complex. Here's another question. Has anyone had any experience determining the foreclosure rate? What I mean is this, this complex was converted in 2006 and everyone is flipped. Out of the 193 units, 50 are in foreclosure. At what point do owners traditionally walk? I'm not very knowledgeable about the various loans, I just stick with a 30 year fixed. On some of these unusual loans is there a point where owners walk? I would think most of these owners are two years into the loan, is there ever a point where the "walk aways" will stop. Of course I understand this all depends on the current market situation, so let's assume the market stays the same.

They may be required to pay fees, but it appears they are not. This process of bank takeover has lengthened also. It seems they used to be able to transfer the title in about 3 months. Now it has gone to a year. Probably due to the back log of foreclosures, but it's a year of not paying dues.

I am purchasing a condo from Countrywide REO in Florida. We ran into trouble with the HOA. It seems that when a condo goes into foreclosure the banks stop paying the fees. Countrywide has agrees to pay all back fees with this condo. But we just learned the complex has 25% of the units in foreclosure. That means 25% less income. The monthly fee was just increased a little bit. I'm worried about the HOA's ability to collect fees from the bank owners of these foreclosures and what that might mean for the members that are actaully paying their fees. It seems that potentially there could be an HOA meltdown in Florida without some legislative action. Alot of these HOA's were set up right at the end of the boom and EVERYONE paid way too much. In these complexes basically everyone is flipped and many are walking. What happens if the foreclosure rate goes to 50% or 75%? Can an HOA pay their bills on this much less income? Their only recourse is to raise fees or assign an assessment which would cause more to walk. It would seem that the best solution would be to make it easier for he HOA to collect fees for the REO units. Anyone have any insight on this situation that would calm me down? Or should I run away?