Home Selling in 11233>Question Details

Tyler Thackr…, Home Buyer in Brooklyn, NY

Only half of the people in my HOA pay maintenance fees so our building is $400,000 in areas. How much does this affect my ability to sell?

Asked by Tyler Thackray, Brooklyn, NY Mon Mar 4, 2013

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someone needs to light a fire under the condo association to get things moving and to begin legal action against the deadbeat owners ...............potential buyers will be turned down for their mortgages if the financials are as bad as they appear to be...so,, absolutely, yes, this will impede anyone's ability to sell in the building....plus - even if a buyer has all cash, they will be reluctant to invest there, and will probably run in the opposite direction, no matter how discounted the prices may be


good luck!
0 votes Thank Flag Link Tue Mar 5, 2013
Dear Tyler:

That is not good. Anytime a purchaser makes a deal on a condo, the purchaser's attorney is going to want to see the financial statements and as soon as they do they will know that the building is in arrears. Your condo association needs to address this issue. The condo needs to start a legal action against the members who are not paying.

If this condo was built and sold between 2006 and 2008 the owners may have negative equity. This means the condos are not worth the balance that is still owed on their mortgage. This takes away a persons incentive to want to continue to pay their mortgage and/or common charges.

In the end the condo is going to have to figure out some way to get out of the mess that it is in. If you want contact me direct and we can share more thoughts on this. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Tue Mar 5, 2013
Unfortunately it will be problematic for anyone who wished to purchase with a mortgage; it will also effect the units market value...
0 votes Thank Flag Link Tue Mar 5, 2013
This is a very seriouse problem, and it will definatly affect your ability to sell at what should be "market price" obviously this will effect the "market value" of your unit.

Kathryn Lilly, Broker
Realty on the Greene, LLC
718-858-7600
0 votes Thank Flag Link Mon Mar 4, 2013
You mean $400k in arrears? Very bad for any buyer getting a mortgage, lenders do not want to risk lend to a buyer with an HOA with inadequate reserves. There is a condo questionaire regarding number of units delinquent, number of non occupied rentals, and reserve requirments. If the HOA is insolvent, that is a huge concern for any buyer because they can expect the monthly HOA to go up. Talk to a local agent about your specific area and read your condo budget, that should be available to you. best of luck!
0 votes Thank Flag Link Mon Mar 4, 2013
Please call me right away. I teach real estate at a college and can explain.
Trisha Francis
646.996.6609
0 votes Thank Flag Link Mon Mar 4, 2013
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