PanamaMike
Junior Member
What is the name of your state? Texas
I'm in a rather complex situation. I'll do my best to describe the situation and I hope someone could provide some insight as to what could be done to fix the problem.
About a year ago, I made the descison to purchase a condo in a rougher part of town. Actually the condominium was in decent shape and people living in the area where pretty nice. They told me things where going o.k. and the neighborhood although not idea was still fine. Since the property was relatively cheap I decided to buy.
Fast forward one year and I've it looks like the neighborhood isn't don't as well as I'd hoped. Actually the area around the complex is fine, but the complex is going down hill. There have been some items that need repair that hadn't been addressed. Finally I decided to dig a bit deeper and my investgation has uncovered some pretty disturbing problems.
1: The complex is owned by 70% landlords for rent. This in itself isn't bad until you factor in #2.
2: There are various units that are VERY far behind on the HOA fees. The HOA fees are rather high compared to the market value of the condos $170+, but I just learned from the Condominium manager there there is one individual that is behind by $6000.00 and several others behind in the $1000.00s range. I'm then told those who pay are in the minimum and they don't even make enough to cover the minimum costs of keeping the condominium running! For example in Jan. he collected $936.00 when the minimum maintenance is $4000.00! Furthermore, he's had trouble having any leverage on these folks because of a design issues. The condos are broken up in what ammount to duplexes. Each duplex shares one water meter and the HOA pays for the water. As it turns out, about half of the HOA fees go to water, about $2000.00, and since the units share the water shut off, it can't be turned off for just one unit.
3: I've spoken to and written this property manager a dozen times over the last year, and I don't know that I can trust what he says. He seems to be a straight shooter and I'm at a loss when it comes to demanding repairs or any other help due to the situation described in #2. The private road access to the condo is in serious need of repair, but there is no money for the work! What exactly is this person responsible for in this situation?
In the end I fear the HOA can go to bankruptcy since it's behind on payments for water, grounds keeping, and trash pickup. What happens if a major repair becomes necessary? (Which is likely)
I'd like to know if there is any legal recourse I could take as a home owner against the other home owners that are delinquent? Can this action be taken on behalf of the HOA? What happens if the HOA becomes bankrupt? If they attempted to liquidate the properties would go for next to northing due to their state.
Additional note about what the property management has tried to do to aleviate the situation. They took measures to move to forclose on those that have high deliquent HOA fees due. Some are willing to wait out the process, a few months or so, and pay at the last minute. While another owner, the one that owes 6k, promised to pay and made 1 payment in good faith. The HOA manager accepted this offer and stoped the motion to foreclose. The person paid one more time and hasn't made another payment for 3 or so months! What can be done in a situation like this? Can the case be picked up right from where it ended or does it have to start all over again? In the end the property manager has basically said he is giving up on the idea because people are dragging out the process and starting it back up all over again to no avail. They pay up to current then stop paying again til the next threat of foreclosure.
Any input on what could be done to help the situation would be greatly appreciated. I don't want to make selling the property an option due to the housing slump in my area and the fact that I've only owned it for 1 year. Please try to provide advise not including this option.
Regards,
Mike
I'm in a rather complex situation. I'll do my best to describe the situation and I hope someone could provide some insight as to what could be done to fix the problem.
About a year ago, I made the descison to purchase a condo in a rougher part of town. Actually the condominium was in decent shape and people living in the area where pretty nice. They told me things where going o.k. and the neighborhood although not idea was still fine. Since the property was relatively cheap I decided to buy.
Fast forward one year and I've it looks like the neighborhood isn't don't as well as I'd hoped. Actually the area around the complex is fine, but the complex is going down hill. There have been some items that need repair that hadn't been addressed. Finally I decided to dig a bit deeper and my investgation has uncovered some pretty disturbing problems.
1: The complex is owned by 70% landlords for rent. This in itself isn't bad until you factor in #2.
2: There are various units that are VERY far behind on the HOA fees. The HOA fees are rather high compared to the market value of the condos $170+, but I just learned from the Condominium manager there there is one individual that is behind by $6000.00 and several others behind in the $1000.00s range. I'm then told those who pay are in the minimum and they don't even make enough to cover the minimum costs of keeping the condominium running! For example in Jan. he collected $936.00 when the minimum maintenance is $4000.00! Furthermore, he's had trouble having any leverage on these folks because of a design issues. The condos are broken up in what ammount to duplexes. Each duplex shares one water meter and the HOA pays for the water. As it turns out, about half of the HOA fees go to water, about $2000.00, and since the units share the water shut off, it can't be turned off for just one unit.
3: I've spoken to and written this property manager a dozen times over the last year, and I don't know that I can trust what he says. He seems to be a straight shooter and I'm at a loss when it comes to demanding repairs or any other help due to the situation described in #2. The private road access to the condo is in serious need of repair, but there is no money for the work! What exactly is this person responsible for in this situation?
In the end I fear the HOA can go to bankruptcy since it's behind on payments for water, grounds keeping, and trash pickup. What happens if a major repair becomes necessary? (Which is likely)
I'd like to know if there is any legal recourse I could take as a home owner against the other home owners that are delinquent? Can this action be taken on behalf of the HOA? What happens if the HOA becomes bankrupt? If they attempted to liquidate the properties would go for next to northing due to their state.
Additional note about what the property management has tried to do to aleviate the situation. They took measures to move to forclose on those that have high deliquent HOA fees due. Some are willing to wait out the process, a few months or so, and pay at the last minute. While another owner, the one that owes 6k, promised to pay and made 1 payment in good faith. The HOA manager accepted this offer and stoped the motion to foreclose. The person paid one more time and hasn't made another payment for 3 or so months! What can be done in a situation like this? Can the case be picked up right from where it ended or does it have to start all over again? In the end the property manager has basically said he is giving up on the idea because people are dragging out the process and starting it back up all over again to no avail. They pay up to current then stop paying again til the next threat of foreclosure.
Any input on what could be done to help the situation would be greatly appreciated. I don't want to make selling the property an option due to the housing slump in my area and the fact that I've only owned it for 1 year. Please try to provide advise not including this option.
Regards,
Mike