Home Buying in Naples>Question Details

Mig, Home Buyer in Naples, FL

Does vacancy effect the HOA fee? I like a community in Naples but the HOA is $325 per month and they have at

Asked by Mig, Naples, FL Wed Oct 15, 2008

least a 20% vacancy due to foreclosure. What are the risk of the HOA going higher?

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5
Mig,

There are certain communities down here that are having issues with short sales and foreclosures, stay clear of those communities. Like the first answer, there are reviews done every year, but you can bet that those negative items will reflect in HOA fees moving up unless that community has a huge reserve (most don't). I would be happy to answer any questions you have om the community you are talking about.

Thanks,

Scott Riddle
239-289-1849
0 votes Thank Flag Link Wed Oct 15, 2008
HOA fees are set by the board running the community and the cover the amenities of the community. They can always go up as the board deems necessary to cover those costs. The budget is prepared yearly and ususally reviewed about now to get ready for next year.
If you have any other questions please do not hesitate to contact me at rae@raewakelin.com
0 votes Thank Flag Link Wed Oct 15, 2008
HOA and/or Condominium fees are based on the overall costs of maintaining the community. Though the community may be experiencing some vacancies due to the foreclosure process, the mortgagor will be required to continue paying the established association fees. In the foreclosure process, the lienholder actually becomes the "owner" and therefore responsible for paying community fees. The overall impact on the community may be a delay in maintenance items as the expected funds may not be available due to past due payments into the association fund. As a buyer, you can make your contract contingent upon your approval of the current HOA budget. This will give you time to review the current financial status as well as be informed of any shortfalls.
0 votes Thank Flag Link Wed Oct 15, 2008
There are all possible risks to HOA fees going higher when forclosures continue to rise. Although if you look in the right communites where there is not a lot of forclosures you will be safe. I have been here for 25 years and know every community like the back of my hand. Let me know some specifics and I can fire off handpicked listings in safe communites.
0 votes Thank Flag Link Wed Oct 15, 2008
No HOA is set in stone......

The budget is reviewed every year and adjustments are made accordingly.
0 votes Thank Flag Link Wed Oct 15, 2008
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