How to X-ray an HOA #5- Delinquency Rates, Foreclosures and Short Sales

Buyers should be wary of cash-strapped developers or bank-owned buildings.  Developers and banks tend to lowball the cost of major repairs or improvements.  These groups may also fail to aggressively market the building or fix construction defects.  If the developer still controls the association, review the financial statements mentioned in Part 2 of this series.   Has the developer made the reserve fund deposits on time?  If instead, those payments have been deferred, try to verify the developer’s financial health and reputation.   If it has not already been disclosed, buyers should … [Read more...]

Dangerous Deficiencies

A common question posed by homeowners in financial distress is "Can the lender get a deficiency judgment against me?"  A deficiency judgment is a charge imposed on the owner when the foreclosure sale price fails to fully pay the mortgage balance.   Whether such a judgment is possible depends upon the property's location because each state has crafted its own rules for this situation.    Numerous websites attempt to explain the mortgage foreclosure process and often provide a list of the states where deficiency judgments are allowed.  Unfortunately, these lists can be wrong.  Many … [Read more...]

DISCLAIMER: No attorney-client relationship is created between the website owner and the website visitors, no matter what. The owner makes no claims or guarantees about the accuracy or completeness of the website contents and expressly disclaims liability for errors or omissions. No warranty of any kind, express, implied or statutory, is given for any contents, hyperlinks or other internet resources. Those accessing this website assume full responsibility for its use and agree that the website owner is not liable for any claim, loss or damage arising from that use.