has the laws changed on OYO properties regarding home equity loans? I am thinking of buying a OYO that needs repairs and upgrades. can i get a loan?

Asked by Orchidslim, 90802 Thu Sep 9, 2010

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5
Sindy Verdugo, Agent, Long Beach, CA
Tue May 17, 2011
As far as I know there is no financing for own your owns. They have a common tax bill for the entire building. Condo's have a seperage tax bill. The lender needs to be able to make sure the taxes are paid to control his interests. If the association did not pay property taxes, the entire building could be sold to the state and the lender would be out. That is why they do not loan on OYO's.
Web Reference:  http://www.freecma.net
1 vote
Deb Dobias, Home Owner, Long Beach, CA
Tue Jun 7, 2011
Some OYOs do have seperate tax bills. That is not the problem. Lenders and our attorney who has dealt with OYO problems for many years has told us that the financing problem is simply that lenders don't want to deal with something that they are not familiar with. Whenever a willing lender does pop on the scene, they have lots of requirements like high owner occupancy, high loan amount and high down payment, and high interest rates. If you can buy the place and wait about 2 years to begin repairs, I would recommend that you first speak to the HOA and Tim Murakami to find out what your chances are to convert the OYO to condo before you buy it. Murakami is very experienced in conversions and will answer your questions. There are no guarantees that you can get it converted and it's a lengthy process, which is why they are priced lower than condos.
0 votes
Jack Tanner, Agent, Long Beach, CA
Thu Apr 28, 2011
We worked with two clients that purchaed "Own Your Own" units last year.
One on Atherton and one on Appleton, both in Long Beach. =0)

I know of three lenders (Not brokers, lenders) that you can use.

If you are serious, give us a call. 562-938-SOLD (7653)
0 votes
, ,
Wed Sep 22, 2010
Hi Barbara,

Would you be so kind to define OYO properties? I have never seen or heard that term before. .... Thank you, Rudi'
Web Reference:  http://www.umboc.com
0 votes
Barbara Robb…, Agent, Long Beach, CA
Wed Sep 22, 2010
There are currently no lenders loaning on OYO properties. That is why it became imperative that the OYO associations do the condo conversion. Many of the properties that I have handled for buyers over the years have done that. For those who still hesitate because they don't want to put out the $2-$3K that is needed to have the paperwork done, now are at a loss to get financing or even to sell their places unless their buyer has cash. So I am sorry to say until your complex converts there are not only no home equity loans but any kind of financing at all. If you have any other questions, please feel free to contact me at 714-296-7270.

Regards,
Barbara Robbins-Olexa, Broker
L b Brokerage
DRE Lic#797560
bstrealtor@aol.com
714-296-7270
0 votes
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