As you can imagine, with so many people in financial trouble, there are many people behind on their HOA payments. Well, if the complex has more than 15% of it's units more than 30 days behind on HOA payments, the lender will probably NOT fund the loan for you to buy in that complex! Also the same applies if the complex is less than 51% owner-occupied.
This is a potential major problem as, when this occurs, the only buyers who can close the deal are CASH buyers. Some lenders are trying to get loans through but my information is that it is very, very difficult.
If these rules stay the same, the problem could get worse, as many cash buyers are investors, and this just makes the owner occupied ratio further away from lenders acceptable ratios.
Selling homes in these complexes is going to be very hard. On the other hand, if you are a cash investor, you may be in a very strong position.
The market at the moment is one of great opportunity, but it is NOT a simple market!
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