$2500, sounds like the Watergate complex in DC. High rises are the worse type of Condominium for maintenance fees. They are better organized as a Cooperative Condominium. This way the biggest fees can be spread out over a master mortgage/line of credit. Either way common areas need to be taken care of.
WOW, yes, that's right. I am so happy you are where you are now! This entire condo thing no one could have seen coming, and it's a nightmare for many. 😥
if you have 10 foreclosures the delinquent homeowners HOA fees arent shouldered by the rest of the remaining members. the owed fees are taken out of the sale price when the home is sold and given to the HOA. the new owners then continue paying the normal dues and the rest of the older owners arent effected(in fact they are now not having to shoulder the costs like they were before the home was foreclosed on and sold).
The only time it would have an effect on non delinquent owners is if the association needs to take out a loan to cover delinquent payments until they are recovered. Especially if the association has limited cash reserves.
@@Drknnja Or if the sale is so low because the property price has dropped to the point that it can't cover the delinquent fees, which is unlikely for now, but the 2008 housing crisis was caused by something along those lines. When homes can't sell for enough to cover the liens on them, the lien holders (banks in 2008, HOAs in this situation) are the ones who lose out. The condo market would have to collapse to an absolutely insane degree for that to happen, though. The problem arises when there's a mortgage on the condo. The mortgage holder gets paid to completion before the HOA gets a cent. If someone buys a 500k condo with a 400k mortgage and racks up 50k in overdue HOA fees before getting foreclosed on, only for the price to drop to 300k... the bank gets the full sale and the HOA gets nada and has to eat the loss.
Sounds like a relator problem not setting realistic expectations when selling a condo. Yea you might loose a couple sales when you scare them off with potential fee's. Although I do have a question. When you buy into a condo do you have a private inspector, or do you use the most recent inspection?
It's always best to disclose and definitely hire a Realtor who specializes in condos. Condos are very different from single-family properties. There is so much more to condos. Always hire your own home inspector when purchasing a condo. Also, make sure to get the financials, minutes from the last three minutes, Rules & Reg, Declaration of the condominium or condo docs, CC&R, bylaws, all the paperwork so you can make an informed decision.
Thank you for your comment and for watching my video! Homeowners Associations (HOAs) derive their authority from the legal documents that establish the community, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), which homeowners agree to when they purchase property within the community. These documents are legally binding and grant the HOA the power to enforce rules and collect fees for the maintenance and management of the community. This authority is also supported by state laws, which vary by state. If you have any further questions or need more detailed information, feel free to ask!
Thank you for sharing your perspective. Condos can have their pros and cons, just like any type of housing. While some people find HOA fees and regulations challenging, others appreciate the convenience and amenities that condos offer. It's important to carefully consider your lifestyle and preferences when choosing a home. For some, the benefits of condo living outweigh the drawbacks. It's all about finding what works best for you!
Thank you for your comment. It's understandable to feel frustrated when HOA fees seem excessive. While corruption can be a concern, it's important to recognize that not all HOAs operate this way. Sometimes, high fees are necessary to cover essential maintenance, repairs, and amenities that ensure the community's upkeep and property values. However, if you suspect mismanagement or corruption, it's crucial to get involved, attend meetings, and ask for financial transparency. Engaging with your HOA can help ensure funds are used appropriately and responsibly.
To Receive a Personalized Referral For a Realtor, Visit - forms.gle/gkTmCQeTRWtu6Gzs9
Just saw a condo that sold for 500k in 2021/22 go for 150k, wondered why then I saw the HOA was 2500 a month...complete insanity
I know it's crazy and really sad what is happening!! 😞
You have to be a multi millionaire or a billionaire now days thanks to Bidennomics.
$2500, sounds like the Watergate complex in DC.
High rises are the worse type of Condominium for maintenance fees. They are better organized as a Cooperative Condominium. This way the biggest fees can be spread out over a master mortgage/line of credit. Either way common areas need to be taken care of.
Marina Grande, so glad we dodged that bullit, thank you!
WOW, yes, that's right. I am so happy you are where you are now! This entire condo thing no one could have seen coming, and it's a nightmare for many. 😥
if you have 10 foreclosures the delinquent homeowners HOA fees arent shouldered by the rest of the remaining members. the owed fees are taken out of the sale price when the home is sold and given to the HOA. the new owners then continue paying the normal dues and the rest of the older owners arent effected(in fact they are now not having to shoulder the costs like they were before the home was foreclosed on and sold).
Thank you so much for sharing this update!! That would be wonderful news for everyone and less stress as well.
The only time it would have an effect on non delinquent owners is if the association needs to take out a loan to cover delinquent payments until they are recovered. Especially if the association has limited cash reserves.
@@Drknnja Great point and thank you for commenting!
@@Drknnja Or if the sale is so low because the property price has dropped to the point that it can't cover the delinquent fees, which is unlikely for now, but the 2008 housing crisis was caused by something along those lines. When homes can't sell for enough to cover the liens on them, the lien holders (banks in 2008, HOAs in this situation) are the ones who lose out.
The condo market would have to collapse to an absolutely insane degree for that to happen, though. The problem arises when there's a mortgage on the condo. The mortgage holder gets paid to completion before the HOA gets a cent. If someone buys a 500k condo with a 400k mortgage and racks up 50k in overdue HOA fees before getting foreclosed on, only for the price to drop to 300k... the bank gets the full sale and the HOA gets nada and has to eat the loss.
Sounds like a relator problem not setting realistic expectations when selling a condo. Yea you might loose a couple sales when you scare them off with potential fee's. Although I do have a question. When you buy into a condo do you have a private inspector, or do you use the most recent inspection?
It's always best to disclose and definitely hire a Realtor who specializes in condos. Condos are very different from single-family properties. There is so much more to condos. Always hire your own home inspector when purchasing a condo. Also, make sure to get the financials, minutes from the last three minutes, Rules & Reg, Declaration of the condominium or condo docs, CC&R, bylaws, all the paperwork so you can make an informed decision.
What legal authority was given HOA's to stipulate anything?
IMO
Thank you for your comment and for watching my video! Homeowners Associations (HOAs) derive their authority from the legal documents that establish the community, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), which homeowners agree to when they purchase property within the community. These documents are legally binding and grant the HOA the power to enforce rules and collect fees for the maintenance and management of the community. This authority is also supported by state laws, which vary by state. If you have any further questions or need more detailed information, feel free to ask!
It’s called a contract.
@@mike-uw6wt Thank you for your comment 😀
Moral to the story don't live in a damn condo
Thank you for sharing your perspective. Condos can have their pros and cons, just like any type of housing. While some people find HOA fees and regulations challenging, others appreciate the convenience and amenities that condos offer. It's important to carefully consider your lifestyle and preferences when choosing a home. For some, the benefits of condo living outweigh the drawbacks. It's all about finding what works best for you!
excessive fees are the result of corrupt hoa officals
Thank you for your comment. It's understandable to feel frustrated when HOA fees seem excessive. While corruption can be a concern, it's important to recognize that not all HOAs operate this way. Sometimes, high fees are necessary to cover essential maintenance, repairs, and amenities that ensure the community's upkeep and property values. However, if you suspect mismanagement or corruption, it's crucial to get involved, attend meetings, and ask for financial transparency. Engaging with your HOA can help ensure funds are used appropriately and responsibly.
Go bankrupt!!!