home owners association: Home Owners Associations...Buyer Beware! - 08/20/11 08:17 AM

While you may be familiar with basic due diligence for HOAs, there are additional risks a buyer needs to understand to protect themselves when purchasing a home for sale in a common interest development community:
Unfunded or seriously underfunded reserve and replacement accounts: In this case, there are long-term repairs and replacements that will be needed in the future, like roofs, private streets, mechanical equipment, but the HOA has not saved anywhere near enough money to pay for these.
HOA in litigation: The HOA could spend a lot of money filing or fighting litigation and most lenders will not lend money on … (1 comments)