condo association

**docsheg** · 11-17-2009, 11:15 PM

find myself in a pickle, condo association took out a $1 million dollar loan and didn't raise the monthly fee enough to cover the loan payments. they are doing a 13,000 dollar special assesment from the association members. the association only has 72 units , 3 are in foreclosure and i really want to run away from this place. I'm thinking of refinancing to cover the special assessment but don't know if any mortgage company would touch it due to the finances of the association plus i don't think the condo is sellable due to the association finances.
Any insight on what my options would be? We are in Hampton Roads, Va.
Thank YOU

**Chrisopher Moltisanti** · 11-18-2009, 03:32 AM

Just take a shot. If you want to run away (and I don't blame you) and the fools on the board obviously don't know what they're doing, put it on the market. Go to your local Realtor right now and have 'em begin the process.

If you really want to run away (and it sounds to me like you're in a hurry), DON'T over-price the stupid thing. It's a condo man, not an Estate. Unload it.

CM

**Jim Erickson** · 11-18-2009, 06:04 AM

Check your insurance. Should have a HO6 policy which may cover part or all any special assessments.

**Chrisopher Moltisanti** · 11-18-2009, 06:09 AM

H0-6 Condo:
Coverage A - Dwelling
Coverage B - Other Structures/Appurtenant Structures
Coverage C - Personal Property
Coverage D - Loss of Use

How does his H0-6 policy help him?

CM

**Jim Erickson** · 11-18-2009, 06:57 AM

He needs to review his policy. Not all policies only cover those you listed. Here is a good article on HO6's
http://www.timothycline.com/pdf/indi...ed%20Equal.pdf

**Chrisopher Moltisanti** · 11-18-2009, 09:08 AM

"Some HO-6 policies will even cover a special assessment that resulted from an error in judgment committed by the Board of Directors.

This latter coverage would be provided by the Directors & Officers Liability policy maintained by the Association that would seemingly make this coverage only important if the Board were sued in an amount in excess of the

coverage maintained, or there were multiple occurrences that had exhausted their coverage limit."

That's assuming the Board even has a D&O policy. Which I don't think this person would be allowed to view.

HIS insurance wouldn't cover this "Special Assesment". His losses can't be covered under a "stupidity peril".

CM

**Greg** · 11-19-2009, 05:28 AM

You don't say what the money is for. Will the improvements make the condos more desirable? If you stay, will you be able to sell for more money after the repairs are done?

I have seen similar assessments take place, by very conscience and knowledgeable associations, and the end result was an improved condo complex with much more market desirability. If the condos in question need major upgrades then this might be the best approach.

I think before anyone here can answer your question we need more details about what the assessment will accomplish.