Be Cautious When Buying Into Condo HOA
It has always been critical to review homeowner association docs when considering a condominium purchase. In today's economic times, it is even moreso.
With many people behind on their mortgage payments, it is possible that they are also behind on monthly dues, which go toward maintenance of common areas, the exterior shell, and a portion going toward reserves. If these payments have not been made, then the reserves may not be sufficient to fund necessary upkeep or special projects. In that case, the HOA has the ability to special assess everyone when a big-ticket item needs funding. Also, your monthly dues could be increased.
When you are reviewing HOA docs with your agent, be sure to have the most recent financial statements, which will reflect if any current owners are in arrears and will provide the overall financial condition of the property.
Happy hunting!