Joan Congilose's Real Estate Blog: January 2012

If Your Monthly Condo Association Fees Are In Arrears It Affects Everyone

If you are a condo owner and  live in a community that has monthly homeowners  association fees please try to keep up with  your monthly payments. I know that many take for granted that the community will survive on its own & that there is probably plenty of money in reserve to pay for the inclusive amenities and also services  that your fees cover such as  recreation areas, exterior maintenance,landscaping, snow and trash removal, etc.

 However, what you may not realize is that all  mortgage lenders follow FANNIE MAE   guidelines  requiring a condo community to show that less than 15% of the residents are in arrears on their monthly homeowners association fees in order for even 1 homeowner to sell their home if their buyer is obtaining financing.

 In essence  your community becomes unsaleable to anyone other than a cash buyer.  In addition,if more than 15 % of your neighbors are not paying their dues, not only can no one obtain a mortgage to buy there, but none of the present owners can refinance their present home or even obtain a reverse mortgage. Moreover, the association fees will eventually increase for all in order to cover the shortage of those not paying their dues at all. Thus, a community that has higher than usual maintenance fees, and that can only be purchased for cash will eventually decrease in value. Result, everyone loses.

I have had this happen to buyers recently that have excellent credit and are approved for a mortgage and can not close because  the association fees past due  in the community have just risen to over 15%. So what is a buyer to do, knock on peoples doors and ask them to go pay their dues so they can close on their house? It is really a sad situation and is becoming widespread.  Please share this information with  your clients, friends & neighbors . Perhaps if we share this information a few more owners will pay their dues, condo buyers will be able to actually get to the closing table and condo sellers will be able to move on. 

Joan Congilose, Broker/ Sales Associate

my picCentury 21 Action Plus Realty

Call or e-mail me Office (732) 462-9510 Cell (732) 232-5277

jcongilose@actionplusrealty.com

www.joancongilose.com

 

Comment balloon 4 commentsJoan Congilose • January 21 2012 07:03PM
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