The last-ditch attempt on the condo
Jul. 27th, 2009 05:25 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
cormacI don't expect them to accept, but hey, it's worth a shot, right?
July 27, 2009
US National Bank As Trustee for
BNC Mortgage Loan Trust 2006-2
Regarding: 225 W. Central Ave. #C Monrovia, CA
To Whom it May Concern,
Here we now are, four and a half months after my offer was accepted, four and a half months of my lender and agent pushing and begging for full HOA disclosure, and I have been notified that with only $1000 in the reserve account not only my lender, no lender would make a loan on this property. It looks like this complex will take years to come far enough in the black for banks to invest in it, if ever. Even if you tried to sell this property to an all cash buyer, that buyer will still demand the financials of the complex to confirm that it is not heading into bankruptcy. And since there are no financials....
So now I need to look at it as an unemotional investor. An investor willing to look at the far long term and with the understanding of the financial risks I would be taking, just like buying into the stock exchange. And for the right price/investment I would be willing to do so.
Before we talk price, I want to be sure the following is understood by all parties involved in the sale of this condo: unlike a normal sale where an REO seller and it’s agent disclose nothing, in this case both you as seller and your agent know all the negatives about this complex and since you do have first hand knowledge will be required to tell all potential buyers about everything.
You will be required to tell all buyers that there are no meeting minutes since 2005 because the HOA doesn’t have meetings. There haven’t been financial records kept since then too, plus that the reserve was depleted for repairing the plumbing and now there’s only $1,000 in the bank (mind you, the HOA won’t prove any existing bank accounts). That’s in addition to having to hand over a copy of my inspection report and if you don’t do it, by law your agent must attach it to her Agent Visual Inspection form.
All this means is that the next buyer, unlike me, must be told everything you now know, right up front. And really, how many buyers would step into this mess? What investor would put hundreds of thousands of dollars of cash into an investment that can not be liquidated?
So now I throw out to you that I will pay you $15,000 cash, close escrow as fast as title and escrow can work it out. I will take the condo as is, both physically and financially. If this can’t be worked out, I insist on being reimbursed for all the monies I laid out for this purchase. Although normally a buyer can’t get these fees reimbursed by an REO seller, I’m looking at this situation, where you and your representatives were very lackadaisical about getting us the documentation you promised in our contract. If it wasn’t for my lender rep no financial information would have been forthcoming.
Sincerely,
Kevin Rhodes
ETA: They turned it down. So that's that.
Kevin Rhodes
565 E. Arrow Highway #39
Azusa, CA 91702-5765
565 E. Arrow Highway #39
Azusa, CA 91702-5765
July 27, 2009
US National Bank As Trustee for
BNC Mortgage Loan Trust 2006-2
Regarding: 225 W. Central Ave. #C Monrovia, CA
To Whom it May Concern,
Here we now are, four and a half months after my offer was accepted, four and a half months of my lender and agent pushing and begging for full HOA disclosure, and I have been notified that with only $1000 in the reserve account not only my lender, no lender would make a loan on this property. It looks like this complex will take years to come far enough in the black for banks to invest in it, if ever. Even if you tried to sell this property to an all cash buyer, that buyer will still demand the financials of the complex to confirm that it is not heading into bankruptcy. And since there are no financials....
So now I need to look at it as an unemotional investor. An investor willing to look at the far long term and with the understanding of the financial risks I would be taking, just like buying into the stock exchange. And for the right price/investment I would be willing to do so.
Before we talk price, I want to be sure the following is understood by all parties involved in the sale of this condo: unlike a normal sale where an REO seller and it’s agent disclose nothing, in this case both you as seller and your agent know all the negatives about this complex and since you do have first hand knowledge will be required to tell all potential buyers about everything.
You will be required to tell all buyers that there are no meeting minutes since 2005 because the HOA doesn’t have meetings. There haven’t been financial records kept since then too, plus that the reserve was depleted for repairing the plumbing and now there’s only $1,000 in the bank (mind you, the HOA won’t prove any existing bank accounts). That’s in addition to having to hand over a copy of my inspection report and if you don’t do it, by law your agent must attach it to her Agent Visual Inspection form.
All this means is that the next buyer, unlike me, must be told everything you now know, right up front. And really, how many buyers would step into this mess? What investor would put hundreds of thousands of dollars of cash into an investment that can not be liquidated?
So now I throw out to you that I will pay you $15,000 cash, close escrow as fast as title and escrow can work it out. I will take the condo as is, both physically and financially. If this can’t be worked out, I insist on being reimbursed for all the monies I laid out for this purchase. Although normally a buyer can’t get these fees reimbursed by an REO seller, I’m looking at this situation, where you and your representatives were very lackadaisical about getting us the documentation you promised in our contract. If it wasn’t for my lender rep no financial information would have been forthcoming.
Sincerely,
Kevin Rhodes
ETA: They turned it down. So that's that.
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no subject
Date: 2009-07-28 01:41 am (UTC)I foresee a board takeover in your future. Seriously, though you want a place to buy, they want to sell. The financials need to be in order for these units to be worth anything.
Good luck man!!!
no subject
Date: 2009-07-28 02:06 am (UTC)WvF
no subject
Date: 2009-07-28 02:42 am (UTC)no subject
Date: 2009-07-28 02:47 am (UTC)If the reserves aren't funded, you may not be able to re-fi. If the delinquency rate is high- ditto.
If you get this place, get the best damn insurance you can afford. Pay extra for the special assessment insurance rider. You might need it.
no subject
Date: 2009-07-28 03:07 am (UTC)If I purchase this place, I plan on getting huge amounts of insurance (since I won't have any monthly mortgage) and whip the HOA back into shape. If the apathy is there, it'll be fairly easy to volunteer my way into a leadership role, then levy assessments to bring the HOA back into fiscal compliance.
And even if I don't, if I stay there a year, the rent I'll save will more than pay for the place.
no subject
Date: 2009-07-28 03:14 am (UTC)An assessment takes a vote of the membership- but even if it's small ($500-$1000/unit) that might be enough to pad the coffers and get a project or two done to make the place a smidge nicer- and with only 14 units in the building, having the HOA fully funded will take a lot less $$ than other places. Plus you'll have the special assessment rider on your condo insurance- so all you'll pay is your deductible and your insurance carrier will pick up the rest.
no subject
Date: 2009-07-28 04:18 am (UTC)