Santa Rosa, California condo blues are driving me nutz! We have Bank Owned REO's (Real Estate owned), post foreclosure, CONDOS. However here's the great connumdrum! Can't get an HOA (Home Owners Association) Cert (Certification) for any number of reasons! The HOA is woefully underfunded, late HOA dues, owners have gone, tenants in place throw our ratios out of whack PLUS a few big investors have come in and purchase 10,20,30 of the units hence breaking the "one entity can't own more than______many condos"!! (fill in the blanks for your state!
It's like getting one of my Sonoma County lenders to finance a YURT!! So we are stuck with CASH!! BUT--along comes a Fannie Mae REO and PRANG! They offer the "Homepath" loan which ONLY applies IF THE PROPERTY IS a fannie mae REO!! Many a agent lists in a complex like "Courtside Village" in the SW area os Santa Rosa, see's the Homepath Loan, and mistakenly thinks because THEY have a condo for sale this loan is available! NOPE. The problem is when you run the comps you'll find 4 units with super high prices and an REO selling for cash $10,000 to $30,000 LESS because of the total LACK of financing!
But also compounding the felony is the HOA's either bad bookkeeping, horid management, no HOA meetings minutes or decent reserves. All in all we in Santa Rosa and neighborhing communities along Hwy 101 find prices dropping due to bad management practices of these HOA's! Here are some of MY suggestions:
- HOA's need to start restricting or monitoring the ratio of investor's vs. Homeowners!
- HOA's need to limit the single "entity" rule and put a ceiling on ANY investor owning say, more than 3 units!
- HOA's need to really get their management company on track and make sure regular meetings are called, held, and posted!
- HOA's--like a consumer checking their FICO score, need to check their HOA Cert!! If out of compliance they need to start having a heart to heart with all the owners of the complex. Any investor and/or Homeowner needs to understand you are LOWERING YOUR PROPERTY values via your lack management!