Urgent - info needed on birch glen piscataway (sales, renting)

[Srila1234]

I am looking to buy a condo in birch glen complex in piscataway. I looked at the unit and happened to like it a lot. However I understand that there is an ongoing lawsuit between HOA and the builders. Can someone provide any further info on the lawsuit? Also, any other comments about the neighborhood, schools in the area, transportation, crime rate and potential appreciation in that neighborhood is very much appreciated.

Thank you all for taking the time to help others out.

[Retriever]

The HOA is suing the builders as a result of ongoing water intrusion into the basements of many of the units. A consulting engineer has given the opinion that the original construction was faulty, thus the suit.

Aside from the obvious possibility that you might buy a unit that has this water intrusion problem, there is the added complication that banks will not normally issue a mortgage on a property that is in litigation. As a result, current owners who are attempting to refinance have found that they cannot do so, and those who wish to sell are also unable to do so.

The only possible bright spot in the situation is that the builders still own quite a few units that they have been renting-out for the past few years. They are attempting to sell those units now, but--just like everyone else--they will be unable to get buyers if the buyers can't get a mortgage as a result of the litigation issue. Thus, there is a good possibility that the builders will settle out-of-court and try to move on with things. However, nobody knows if or when a settlement might take place. Once a cash settlement is reached, the HOA will engage a contractor to remedy the defects that exist.

Incidentally, those same builders are the ones who built the new complex across the street, named Cedar Woods.
Was that complex constructed without the defects that apparently exist in Birch Glen?
At this point, nobody knows.


As to the neighborhood, it is safe.
Piscataway's public schools are...okay.
However, the availability of public transit in the area is...not good.

[Srila1234]

Thank you so much Retriever. A couple of follow ups :
1. I am looking to buy a condo and not a townhouse. There is no basement. So, if I can (somehow) get a decent mortgage, does that mean I am good (assuming that I hold this house long term) ?
2. There has been a mention in another thread that birch glen construction is crappy. Do you know anything about that? Does that comment only pertain to the homes with basement or even otherwise?
2. Do you know anything about Maple woods, the adjoining condo? I think the lawsuit that maplewoods HOA has against the builder is coming to a closure, but I don't know any details about the lawsuit. Is Maple woods better than Birch Glen ?

Thanks so much again. This is a great help !!

[Retriever]

Originally Posted by Srila1234

Thank you so much Retriever. A couple of follow ups :
1. I am looking to buy a condo and not a townhouse. There is no basement. So, if I can (somehow) get a decent mortgage, does that mean I am good (assuming that I hold this house long term) ?

2. There has been a mention in another thread that birch glen construction is crappy. Do you know anything about that? Does that comment only pertain to the homes with basement or even otherwise?

2. Do you know anything about Maple woods, the adjoining condo? I think the lawsuit that maplewoods HOA has against the builder is coming to a closure, but I don't know any details about the lawsuit. Is Maple woods better than Birch Glen ?

1) To the best of my knowledge, when a HOA is in litigation, that acts as a red flag for all mortgages in that development. Think about it--if the HOA was to lose the lawsuit, then the HOA would have to pay for the necessary repairs--which potentially could run over 1 million $$. That would essentially undermine the financial soundness of the HOA and/or lead to a huge increase in monthly fees. Those fees would apply to everyone, whether their unit had a defective basement or not. When you are a member of a HOA, the costs are shared.

If you are able to obtain a mortgage, then good for you! In that case, please let me know which bank or mortgage company approved you, as my friend who lives in Birch Glen would probably go there for a re-fi.


2) I don't think that the overall construction is worse than most developments of this type, but it is clear to me that the builders did cut a lot of corners with construction. Then again, so do most builders. If you don't have a basement, that removes one potential problem for you, but that does not necessarily mean that the structure is without problems.


3) I don't know anything specific about Maple Woods, and I had no idea that there was a lawsuit against that builder also!

[Srila1234]

Thanks a zillion...
Yes, there is a lawsuit against maplewoods builder, but I strongly believe it is coming to a settlement in the next few months.
Regarding the mortgage, my understanding is that there are these small banks that do not require the condo questionnaire which needs to be filled out by HOA. After all, there still seems to be sales happening in Birch Glen (a few condos here and there) and not everyone can pay 100% cash...

[tahiti]

Originally Posted by Retriever

The HOA is suing the builders as a result of ongoing water intrusion into the basements of many of the units. A consulting engineer has given the opinion that the original construction was faulty, thus the suit.

Aside from the obvious possibility that you might buy a unit that has this water intrusion problem, there is the added complication that banks will not normally issue a mortgage on a property that is in litigation. As a result, current owners who are attempting to refinance have found that they cannot do so, and those who wish to sell are also unable to do so.

The only possible bright spot in the situation is that the builders still own quite a few units that they have been renting-out for the past few years. They are attempting to sell those units now, but--just like everyone else--they will be unable to get buyers if the buyers can't get a mortgage as a result of the litigation issue. Thus, there is a good possibility that the builders will settle out-of-court and try to move on with things. However, nobody knows if or when a settlement might take place. Once a cash settlement is reached, the HOA will engage a contractor to remedy the defects that exist.

Incidentally, those same builders are the ones who built the new complex across the street, named Cedar Woods.
Was that complex constructed without the defects that apparently exist in Birch Glen?
At this point, nobody knows.


As to the neighborhood, it is safe.
Piscataway's public schools are...okay.
However, the availability of public transit in the area is...not good.

wow, what a mess!

[Retriever]

Originally Posted by Srila1234

Regarding the mortgage, my understanding is that there are these small banks that do not require the condo questionnaire which needs to be filled out by HOA. After all, there still seems to be sales happening in Birch Glen (a few condos here and there) and not everyone can pay 100% cash...

If you can give me the names of a couple of those banks, my friend in Birch Glen would be very appreciative. If you don't want to post the info in this thread, you can send me a direct message.

Thank you!

[Retriever]

I just found out that the builder of Maple Woods is the same one who built Birch Glen, and who is currently building/selling units in the new Cedar Woods complex across the street from Birch Glen. If I was looking for a condo in that area, I would certainly wonder about the quality of construction at Cedar Woods, based on the reality that the HOAs for the builder's two previous projects are suing him for defective construction.

[Srila1234]

Thanks again. So far I happen to know only one bank that has recently provided a mortgage AFAIK. will shortly message you

[CCDDNN]

Is Maple Grove also a part of these associations (birch glen, cedar woods, etc)?