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June 19, 2021, 04:11:18 pm
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Author Topic: Resale of Condo with no HOA in Place  (Read 1778 times)

Offline Herman

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Resale of Condo with no HOA in Place
« on: April 19, 2008, 05:19:58 am »
I'm looking at some great foreclosed properties in Chicago. I will buy the units and resale them to end-buyers (retail customers that will live in them).

Many units in the buildings themselves have foreclosed so the HOAs either have debt or doesn't exist.

I want to know if lenders/ underwriters see no HOA in place or HOA with debt as a red flag or issue and would be unwilling to finance my end-buyers because of it. Does anyone have any experience or insight on this?

Thanks.

Herman
« Last Edit: April 19, 2008, 05:40:41 am by Mdhaas »

Offline yrush2000

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Re: Resale of Condo with no HOA in Place
« Reply #1 on: April 21, 2008, 08:47:25 pm »
no HOA should not be a major problem but chances are your buyer will need to show proof of a current insurance policy for the building

Offline christopher w

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Re: Resale of Condo with no HOA in Place
« Reply #2 on: April 22, 2008, 01:19:10 pm »
Actually it may be more trouble than that. Most of the time lenders need information on the common areas, and owner occupant/investor ratios and things like that. They usually get that from the HOA. So while it may not be a deal killer it will definitely put more work in your lap.
Christopher W
C-214.923.5781

 




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