My Real Estate Blog

When someone decides to walk away from their home and turn it over to the bank, their condo fees and/or HOA fees don't get paid.  These delinquent fees can cause more problems for potential buyers than most people think.  Those delinquencies can make it very difficult for homeowners in the same development to sell their homes

When an association has more than 15 percent delinquencies, the association does not qualify for any type of financing for any buyer in the community.  Cash buyers and possibly local bank loans would be options, but since most loans are through Fannie Mae, the guidelines won't allow delinquencies in the double digits.

Even if a potential seller has paid their  condo or HOA fees or not, they can't sell because people can't finance it.  Also, special assessment fees could be added on to make up for the delinquent fees shortfall. 

We need to educate homeowners about the need and importance of staying current with their HOA payments. After all, if it affects one it may affect all in the development.