What do you think about the President of the HOA Board pooling funds with his adult children to buy one of the condos here that was foreclosed in by the HOA/Board for non-payment of HOA fees? It seems the HOA attorney worked quickly to seal the deal, and they got the unit for tens of thousands below market value. Legal, unethical, illegal or just one of the HOA "perks"
(In California- and you know what housing costs are like here! Let's say he got the condo in 2006 for a 1996 price.)
2006-12-11 11:52:04 · 5 answers · asked by Sabine É 6 in Business & Finance ➔ Renting & Real Estate
Unethical but legal, alas. HOAs perform no useful function that cannot be solved by good neighbors working together. They should be banned.
2006-12-11 11:57:59 · answer #1 · answered by skip 6 · 0⤊ 0⤋
I guess the question you need to ask or look up yourself is in the HOA by-laws, which should have instructions on how the forclosed property is to be resold.
I think its a bit unethical from what you described.
But my 2 cents on HOA foreclosing on condos/homes for piddily small amounts of money. I think that HOA shouldn't be able to foreclose, they should have to go through small claims court.
2006-12-11 12:00:30 · answer #2 · answered by AJ 7 · 0⤊ 0⤋
Call it what it want, but the HOA collects it.s fees because the unit is now sold.
My friend repo's homes for a living, and sells them to his friends (I have not bought one myself) just to make a quick turn around. It saves everyone in the long run, as the longer is sits vacant the more likely it is to get vandalized.
Ask the president to keep you informed the next time something like this happens. It could help you get one cheaper too.
2006-12-11 11:59:04 · answer #3 · answered by Jen 5 · 0⤊ 0⤋
Never heard about this being done. Might want to consult with a local attorney or read over your HOA documents.
Sincerely,
Richard M. Johnston, GRI, ABR, e-Pro
RE/MAX OTB ESTATES
President's Advisory Council Member
Serving Sherman Oaks, Encino, Studio City, Tarzana, CA
2006-12-11 12:03:40 · answer #4 · answered by ? 3 · 0⤊ 0⤋
at the same time as there are covenants, there must be an enforcement mechanism. seem on the guidelines. I stay in a condominium association. The covenants say the Board of directors has a good to levy and carry at the same time fines for non-compliance. If a property proprietor does no longer pay his positive, a lien receives placed on his sources and all community privileges are revoked for that individual. in case you do not have an enforcement provision, you are able to't compel compliance with the association guidelines.
2016-11-25 21:40:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋