The link below is to a story in the Chicago area’s Daily Herald. The question it poses is innocent enough. “Should condo owners press their boards to seek FHA approval?” But the writer misses some terribly important points.
1. 70% of all HOAs in the country have underfunded reserves.
2. With all the fines, lawsuits, liens and foreclosures across the country, any kind of HOA is an investor’s worst nightmare.
3. People are getting educated about HOA Amerika, and Realtors everywhere are hearing, “Only show me listings that are NOT in HOAs.”
4. Fifteen to thirty year old neighborhoods are falling apart, making disaster properties impossible to sell at any price.
5. Financial experts say there’s a housing bubble coming that will look more like a nuclear bomb than a bubble. This one will be a doozie.
It would be very interesting to see if the FHA has approved any Homeowners Associations in the past decade. My guess is that you’d be hard-pressed to find a single one. Freddie and Fanny have financed some recent HOA projects but these two federal agencies are already on life support.
If anyone knows this Illinois journalist, drop him a line. Tell him to do some real reporting.
“The times, they are a-changin’.” -Bob Dylan