Getting your very own house is always a dream come true. The idea that you can now have a life in the place of your choice in the home you will raise your family is very exciting. But of course, even fulfilling dreams has its own rules you must live by. That is the reason why when we hunt for the house of our dreams, we include the Homeowners’ Association in our research. Keep in mind that Homeowners’ Association has long been there before you start looking to buy a house in that area. That means that you will want to adapt to the existing rules set by the Homeowners’ Association.
As the name implies, the Homeowners’ Association is a partnership of homeowners in a common area such as in a subdivision, condominium, etc. They include the management of not just the amenities in your area, but they also make rules on residents.
How can you make sure that you can live with your Homeowners’ Association rules before you buy?
First thing you want to do is to consult your real estate agent to get you a copy of the Homeowners’ Association’s rules. Inquire from your real estate agent regarding matters that concern you: parking, garbage collection, HOA dues, etc. Abiding by the Homeowners’ Association’s rule is essential since the HOA rules are as legal as the laws of the state. This means that whatever the HOA rules lay, the residents have to comply with and for their own benefits.
The HOA is actually more effective than others think. In fact, if you are behind on your HOA dues they can take a short sale quicker than anybody. If you have a delinquent account, the HOA can place a lean on your property which can effectively stop any sale of that property until the account is paid in full. The HOA is more open to negotiations on terms to those having delinquent accounts – that is if not many people are running behind on their accounts.
Before, we can persuade the lender to take some of the proceeds from the sale and pay those back due you owe to the HOA, but not anymore because the banks are pushing back, too. So you may find yourself with a big HOA account that needs to be cleared out before you can accomplish your short sale.
It gets more intense. If you find yourself that you do not have the money to pay your fees and just let your dream home fall into foreclosure. It is true that the lean your HOA place on your property is junior lean to the mortgages so that lean will be erased. But the HOA can make that account and assess it as a personal account and go after you in civil courts. That means you are not off the hook. Your HOA account will be like a bad dream that never goes away.
Having all these said, you should check the fee the HOA will be charging you. This includes the penalties for violations and other legal issues. The HOA can do more good especially if residents know the rules they are supposed to obey – so be sure you know the HOA rules before you buy your very own home.