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I feel judged already because I am judging that post title as someone who doesn't know my circumstances. I will explain.
Bad credit. Living rental house poor. Cannot afford to pay off credit at this time. (waiting to pay off car)
401K allows us to access "hardship" funds to purchase a primary residence, hence why we will have access to a cash buy.
Due to health reasons outside home maintenance is an issue, and for this reason condo/townhouse/apartment seems the best option for us.
If we cash purchase something at auction or foreclosure with bad credit... can the HOA tell us they wont accept us? Do we need pre-approval of any type from the HOA prior to the purchase if we show up at auction to buy something?
Considering my max is only 40,000 I am so thoroughly prepared to do a lot of cosmetic work to a place if need be, but I am not even sure if an HOA will intercept the purchase of a condo through foreclosure or auction?
I am imagining this is a rare situation! Does anyone know about this?
I feel judged already because I am judging that post title as someone who doesn't know my circumstances. I will explain.
Bad credit. Living rental house poor. Cannot afford to pay off credit at this time. (waiting to pay off car)
401K allows us to access "hardship" funds to purchase a primary residence, hence why we will have access to a cash buy.
Due to health reasons outside home maintenance is an issue, and for this reason condo/townhouse/apartment seems the best option for us.
If we cash purchase something at auction or foreclosure with bad credit... can the HOA tell us they wont accept us? Do we need pre-approval of any type from the HOA prior to the purchase if we show up at auction to buy something?
Considering my max is only 40,000 I am so thoroughly prepared to do a lot of cosmetic work to a place if need be, but I am not even sure if an HOA will intercept the purchase of a condo through foreclosure or auction?
I am imagining this is a rare situation! Does anyone know about this?
1. You did not indicate what state you are in - laws vary from state to state.
2. Not aware of any state where a condo association or an HOA has any "approval" authority over a purchaser. In contrast, co-ops generally do have approval authority over purchasers however co-ops are pretty rare anywhere outside of New York.
3. Be very, very wary about putting money into a condo. They tend to have higher monthly assessments than HOAs. Assessments can be raised and special assessments can be imposed unexpectedly which would then put you at risk of losing your condo by foreclosure if you couldn't pay the assessment when demanded.
Make sure you understand your potential tax liability for 2018. If you end up with a big tax bill that you can't pay you'll be in worse shape than you are now.
3 - Check your state's homestead exemptions. You can find it at:
A home you pay cash for might or might not be adequately protected against creditors.
4 - Above all, BEFORE you even make (or sign) an offer on any condo, demand (and get) a complete copy of the association CC&Rs (Covenants, conditions, and restrictions) and By-laws and find out what the monthly fees are.
Financially, you are already on thin ice so make sure you learn all you can about the potential pitfalls.
Never apologize for your situation or worry about being judged. We all have problems we have to go through.
I have seen hoa's in condo/townhouse community require background and credit checks. The standard for credit was low from what I could tell, the main concern was does the potential buyer have sufficient income to pay the fees.
Have you talked to a credit counselor or lender. You may be ble to repair your credit faster than you think and be able to keep more of your money in the bank. If buying in cash from retirement funds best advice is to buy what you need not what would be nice to have.
2. Not aware of any state where a condo association or an HOA has any "approval" authority over a purchaser. In contrast, co-ops generally do have approval authority over purchasers however co-ops are pretty rare anywhere outside of New York.
A friend of mine and his wife live in a CO-OP in Great Neck, NY. I recall him saying that the CO-OP board had to approve them in order for them to buy.
I feel judged already because I am judging that post title as someone who doesn't know my circumstances. I will explain.
Bad credit. Living rental house poor. Cannot afford to pay off credit at this time. (waiting to pay off car)
401K allows us to access "hardship" funds to purchase a primary residence, hence why we will have access to a cash buy.
Due to health reasons outside home maintenance is an issue, and for this reason condo/townhouse/apartment seems the best option for us.
If we cash purchase something at auction or foreclosure with bad credit... can the HOA tell us they wont accept us? Do we need pre-approval of any type from the HOA prior to the purchase if we show up at auction to buy something?
Considering my max is only 40,000 I am so thoroughly prepared to do a lot of cosmetic work to a place if need be, but I am not even sure if an HOA will intercept the purchase of a condo through foreclosure or auction?
I am imagining this is a rare situation! Does anyone know about this?
40K downpayment will surely help make the HOA feel like you aren't as bad of a risk but you are who they are trying to prevent from living there. They don't want to chase residents for money and if you have bad credit they feel you will be a higher risk.
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