Real estate is typically your single largest investment. I'd be very careful of buying into a condo building if the HOA is in distress, or at least do your homework carefully. This would make it problematic to get a home loan--you'd probably have to pay cash to get into the building. The lending climate is tight, especially on condos right now. Better to pay a little more for a place and have financial stability in the complex than to try and "get a deal" and then be stuck battling your HOA or be without basic services.
Sometimes a bargain is anything but - with a condo purchase, one of the things you must evalute is the financial health of the condo development overall. It doesn't sound to me as though this one passes that test.
There are so many good deals out there, my suggestion it so keep looking and find a good value in a strong community.
No point going down with the ship...
Unwavering Commtiment to Serivce
You can do much better than this--there are some fantastic buys out there, but this isn't one of them. Also, the banks are waffling a little on whether or not they will finance condos--some they will--a realtor can check for you and find out if a particular complex can get funding.
I have sold some foreclosure properties, and always put into the contract that all assessments and fees outstanding are to be paid by the seller--one more way to protect yourself. And, remember, you can't get funding unless you can provide information regarding the insurance and if these condos don't have a current insurance policy you wouldn't get a loan anyway.
Remember, you as the buyer don't pay the realtor, so use a realtor to protect yourself--we can write things into contracts to protect you that you might not think of on your own. Why would you pass up on a free service?
Myke Triebold, GRI, LMC
Certified Military Market Specialist
As a follow up to my earlier post, banks aren't always logical and you can't "push" them to make a decision, you can make an offer and wait for their response. The property isn't personal to the person handling the paperwork so even though you are thinking logically, you can't count on anything when trying to buy bank-owned property. These deals are best for people with lots of money, plenty of time and patience, and who don't really need the property as their primary residence.
BE CAREFUL. Do your do diligence. call the bank. They could be thinking of putting it in to receivership.
Faith Home Loans