Impossible HOA

By
Real Estate Agent with Utah Select Realty, Inc.

This is an actual quote from the president of the HOA and general manager of the development in an area by us called Traverse Mountain.  I asked him the purpose of a non compliance lien they placed on this property, he said to get the yards done, I said great, well I have two suggestions on how we can get the yard in AND make this deal not fall through, but yes he would have to think outside of the box.  He said, "I would rather a home sit vacant instead of dealingwith a homeowner"  WOW, so I called him because my client is  buying a bank owned property with a 2,500.00 non compliance lien that they expect all new buyers to escrow and finish their yards within 90 days then they get it in return.

Problem 1- FHA does not allow money escrowed for this unless it is winter

Problem 2- A buyer saves 3.5% down, 3% for closing and now they need to put 2,500.00 in an escrow account where they cannot use it to put in the front yard. 

Problem 3- Again FHA does not allow it, so their solution at Traverse Mountain?  "Hide it"

Solution One -I called to see if they were willing to release the lien and put it back on the property when the homeowner was the actual owner, since he has no problem getting his front yard in immediately (we really are talking barely 10 feet of yard if that) Answer- No

When asked why they replied it wouldn't motivate the homeowner, fair enough

Solution two - Have the homeowner sign an agreement now that upon recording of the property they can place the lien on the property which he will go in and pay per the lien requirements, answer - No

Reason?  None besides this is how we do it with all our properties, Serious?  That would be why your development is struggling and there are so many vacant homes in the area.

This is just the tip of the iceberg, all properties (we got lucky because the bank already paid it) being sold this year are getting charged a 1500.00 transfer fee, besided ths normal 375.00 set up fee and the 500.00 personal subdivision HOA transfer fee. 

There were so many things I wanted to say to this guy, but I proudly held my tongue till I hung up the phone. 

I have never dealt with an HOA so stubborn or ridiculous, most incentives are to actually get what the non compliance issue is resolved, this one?  Would rather have a house vacant than deal with a homeowner, so everyone living out there, your development HOA would rather neighbors house be vacant and bring down your value then get someone in their to take care of it.

 

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