Home Buying in 33028>Question Details

Jvidalfam, Home Buyer in 33028

I found a condo for sale but the bank won't aprove the mortgage due to the debt of the association. If I buy cash, is there a risk with the

Asked by Jvidalfam, 33028 Tue May 11, 2010

associatin debt?

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6
You need to look at what type of debt it is. There is everyday expenses or short term like mowing, insurance etc and then there is long term such as palnning for painting every 5 years or replacing decks or roofs. Next is it actually debt that they borrowed to make repairs or is there a high amoiunt of delinquint homeowners. The size of the association will affect ratios, such as is there only 10-20 homes or 100-200. The larger the more stabile the ratio in a way where the smaller it is, the more the ratio is affected by 1-2 people who get behind. You should have someone review the budget and the minutes from the last years meeting so you know what is going on. Are they talking about any special assessments or to raise the condo fees, is there any large problems that need addressing that will affect the hoa's budgets? A good buyer broker experienced in condos should be able to put the budget and minutes into terms you can understand and know any pros or cons. If you went it alone, maybe a real estate attorney could review them for you.
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1 vote Thank Flag Link Tue May 11, 2010
My opinion look for another condo, you want peace and security in your purchase. do not want headaches
0 votes Thank Flag Link Wed Dec 22, 2010
What's your real estate attorney say?
0 votes Thank Flag Link Fri May 14, 2010
If there are a substantial number of units in pre-foreclosure status and the fact that FHA financing is not allowed, your condo may lose value.
0 votes Thank Flag Link Thu May 13, 2010
It's the bank's business to make money. If they won't lend money to you based on the associations debt, you may want to consider if you are willing to take a risk that they wouldn't. Obviously, they work on a much more conservative level than most of the rest of us, but again, their business is making money and if they won't touch it, I'd think twice about it too.
0 votes Thank Flag Link Tue May 11, 2010
The same risk with the association's debt exists whether you pay cash or get a mortgage. Make sure you clearly understand the association's financial position before you proceed.
0 votes Thank Flag Link Tue May 11, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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