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Old 02-12-2018, 07:36 PM
 
Location: North of South, South of North
8,708 posts, read 8,262,494 times
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30% seems a bit high. We had to put down a 20% deposit on a new house in The Villages and close on the house within 30 days.
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Old 06-11-2018, 08:53 AM
 
143 posts, read 105,050 times
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Originally Posted by The Villages Guy View Post
30% seems a bit high. We had to put down a 20% deposit on a new house in The Villages and close on the house within 30 days.
I think the mystery around this sale lies in the appraisal. I think the seller knows the property wonít appraise at the sales price and is hoping the buyer wonít back out for that reason. Iíve been studying the sales price history in the listings extensively and a lot of these properties are far above the previous bubble prices, which doesnít make a lot of sense. Resale homes arenít supposed to cost more than new homes. Housing does have a lifespan with the mortgage companies. Not to mention the ever changing building codes because of hurricanes and even termites.

As far as your post, I talked to a rep from The Villages this weekend. I was shocked to be told they donít allow VA loans on their new construction homes. This is another red flag because the VA is essentially guaranteeing that if a buyer defaults the lender gets paid. Because of this you donít even need PMI insurance on a VA loan.

All of this on top of the company store mining the miners in these HOA company towns.
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Old 06-16-2018, 04:27 PM
 
Location: Florida
3,745 posts, read 3,031,725 times
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Originally Posted by The Villages Guy View Post
30% seems a bit high. We had to put down a 20% deposit on a new house in The Villages and close on the house within 30 days.
The 30% is in the HOA rules and designed to reduce foreclosures. The rules have been recently updated and I think all of OTOW is 20%. Before the change part was 20% (newer areas) and part 30%.
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Old 06-17-2018, 06:00 AM
 
143 posts, read 105,050 times
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Originally Posted by rjm1cc View Post
The 30% is in the HOA rules and designed to reduce foreclosures. The rules have been recently updated and I think all of OTOW is 20%. Before the change part was 20% (newer areas) and part 30%.

Not only does such a misguided policy screw sellers, it's questionable whether it can achieve it's stated goal.


How exactly would OTOW lose by allowing VA backed mortgage buyers (that got that loan as part of their service to the nation) to put less than 20% down? What's the downside? The policy certainly reduces the pool of potential buyers. And buyers still have to meet debt to income ratios to get the loans to begin with.



This article from NAR says 66% of boomer obtained a mortgage, so it's a myth that most of them are walking in and paying cash.


https://www.prnewswire.com/news-rele...300666539.html


OTOW potentially lost me as a customer, because I didn't even bother to take the tour after the sales rep told me this. But Stone Creek, that doesn't have such a policy gained me as a customer.


I don't care if any of my Stone Creek neighbors default or pass away while having a zero down VA loan. I know the VA will come in with tax dollars, clean up or recondition the property, and then sell it.


I had already ruled out The Villages because of their CDD bonds and the fact that the place operates likes Facebook (the homeowners are the billionaire owner's product and get mined like workers at the company store), but they also seem to be doing this on their new construction. The sales rep told me I couldn't use a VA loan period.
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Old 06-21-2018, 09:12 AM
 
4,461 posts, read 4,268,491 times
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Originally Posted by Raisinet View Post
Not only does such a misguided policy screw sellers, it's questionable whether it can achieve it's stated goal.


How exactly would OTOW lose by allowing VA backed mortgage buyers (that got that loan as part of their service to the nation) to put less than 20% down? What's the downside? The policy certainly reduces the pool of potential buyers. And buyers still have to meet debt to income ratios to get the loans to begin with.



This article from NAR says 66% of boomer obtained a mortgage, so it's a myth that most of them are walking in and paying cash.


https://www.prnewswire.com/news-rele...300666539.html


OTOW potentially lost me as a customer, because I didn't even bother to take the tour after the sales rep told me this. But Stone Creek, that doesn't have such a policy gained me as a customer.


I don't care if any of my Stone Creek neighbors default or pass away while having a zero down VA loan. I know the VA will come in with tax dollars, clean up or recondition the property, and then sell it.


I had already ruled out The Villages because of their CDD bonds and the fact that the place operates likes Facebook (the homeowners are the billionaire owner's product and get mined like workers at the company store), but they also seem to be doing this on their new construction. The sales rep told me I couldn't use a VA loan period.
I meant to reply to this earlier, been a little busy. First of all, thanks for the information. That's great information about Stone Creek.

Anyone who has ever served on a HOA board, whether it is a retirement community or not, is very familiar with the downside of an abandoned home from which the owner has walked away, no matter what kind of mortgage it had. It sits. And sits. And sits. These days, in some cases, for as long as five years. And all that time the HOA or whatever the organization is that governs the community is not receiving the monthly maintenance fees for that property, because the banks don't have to pay it, by law. So either the association takes in less money or has to assess the other residents for the shortfall. Meanwhile, the property deteriorates and the board members have to take up the slack and make sure the property doesn't become an eyesore at least on the exterior. So now it's a double whammy, no money coming in, money going out to maintain. Not to mention the money in lawyer's fees to put a lien on the property to ensure that the association at least gets some $$ back at closing when the place is finally sold.

So the idea is that, if a resident has more skin in the game in terms of a down payment, they have less of a monthly mortgage to pay and are less likely to walk away from the property if times get hard for them. Residents at OTOW pay some hefty monthly fees, and they want to be sure the residents can and will continue to pay them. I'm not sure it always works that way, though.

Before moving here, where we lived we had a vet who lived in the house across the street from us for many years, well before we became his neighbor. Very nice man. He came over to introduce himself to us a number of times, because he forgot the last time he introduced himself. One week he had a garage sale. The next week he got in his car and just drove away. Fortunately his family found him safe and sound in Texas and I guess he went to live with one of the family members. But that was the last we heard of him. He was gone. His house had what was left of a VA mortgage on it. It really wasn't very much at all, and he probably had the money to make the payments, but he just couldn't cope anymore, apparently. I guess the family wasn't much help. So the bank foreclosed. It took a year and a half for the whole process to play out until it was sold. And that was fast compared to how most abandoned houses in the area were handled. Yes, in this case either the bank or the VA made periodic visits to keep the exterior kept up, and when they got access they did do a major trash-out and hauling and the place did sell fairly quickly when it was finally put on the market. Still, a year and half of no income for the association. And they still had to watch out for the place and let the bank know if there were problems.
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Old 06-21-2018, 09:25 AM
 
9,170 posts, read 10,950,817 times
Reputation: 12305
Quote:
Originally Posted by Raisinet View Post
Not only does such a misguided policy screw sellers, it's questionable whether it can achieve it's stated goal.


How exactly would OTOW lose by allowing VA backed mortgage buyers (that got that loan as part of their service to the nation) to put less than 20% down? What's the downside? The policy certainly reduces the pool of potential buyers. And buyers still have to meet debt to income ratios to get the loans to begin with.


I don't care if any of my Stone Creek neighbors default or pass away while having a zero down VA loan. I know the VA will come in with tax dollars, clean up or recondition the property, and then sell it.
Where they lose is the HOA fees, typically in the event of a foreclosure the HOA fees do not get paid. FC process can take awhile and those fees add up quick after 10-15 months.

I owned a condo once where my 85+ yr old neighbor had some type of goofy mortgage and it took the company almost 2 yrs to sell the property. None of the HOA fees were paid, the board took it as a loss on the books ($400+ a month = 10K by the time it sold).

The HOA realized they wouldn't get paid even if they sued but if they held up the sale process then it only delayed getting a new owner that would pay the dues.
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Old 09-03-2018, 07:46 PM
 
49 posts, read 39,827 times
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I agree that the seller should have no voice in your finances unless itís a potential cost to them or the fear you backing out. Either was your agent should have the ability to show them or their agent the light. I have found realtors here not very knowledgeable. Having said that some of the property in OTOW is Leasehold meaning you only own the structure not the land. Some Leanderís might want larger down but surely you agent should be able to explain this . If they canít get another one.
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Old 09-03-2018, 08:30 PM
 
Location: Florida
3,745 posts, read 3,031,725 times
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Originally Posted by TOMD View Post
I agree that the seller should have no voice in your finances unless itís a potential cost to them or the fear you backing out. Either was your agent should have the ability to show them or their agent the light. I have found realtors here not very knowledgeable. Having said that some of the property in OTOW is Leasehold meaning you only own the structure not the land. Some Leanderís might want larger down but surely you agent should be able to explain this . If they canít get another one.
The 30% was an original OTOW requirement for some communities. A number of months ago the rules were being changed and the deposit was going to 20%. Don't know if the residences approved the new rules or not.
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