Issue with short sale and unactive neighborhood association (fees, price, contract)

[whatsgoingon4]

I have had a short sale under contract for almost 8 months now. It is in a gated subdivision and has a cabana with a heated pool and spa. Originally they were charging an association fee, however, now they are not. They have been trying to get the association restarted, but right now they have not been providing amentities, because fees are not being collected. I drove by today to find one of the front gates is open, vacant lots (about 75% of the community) are not being mowed often, and the pool has a sign on the gate stating it has been shut down because it is unfit for public use.

I'm starting to rethink this whole thing. I don't understand why it is so hard to get a neighborhood association restarted, this has been going on for the whole time I've had it under contract. Surely people would rather pay the fees than have tall grass in the vacant lots and a green pool?

I am really confused right now. I love this house and it's such a good deal compared to the other stuff in my price range. However, I don't want to buy in a community that's not going to be maintained.

[AZJoeD]

Originally Posted by whatsgoingon4

Surely people would rather pay the fees than have tall grass in the vacant lots and a green pool?

You are absolutely wrong about this. Most people would prefer not to pay HOA fees. Most tolerate then because like you they see it as a positive towards the value of their homes.

Unfortunately with 75% of the lots vacant and homes in the development upside down, like the one you want to purchase, there is no one to support the HOA. I wonder what the state of the builder/owners of the vacant lots to be? Chances are they are in financial distress.

It will probably be a while until this development fills in and has enough solvency to resume operations. If you are getting this house a great price it may be worth the risk and frustration. You have to weigh the pros and cons.