Larry -
I'm sorry to jump in here late, but are you saying you have been warning the
homeowner's there is a deep financial problem in your Association, yet you
are NOT on the board? I find this curious.
Our Association is in the exact same position as you describe, from what I
can tell. And I believe Les to be correct, that low dues over a long
duration will just jump up and bite you in the ass. It is inevitable..
I do not understand why your Association is taking out a loan, rather than
special assessing. I apologize if I have read your position with the board
inaccurately.
I inherited a board deeply in debt (and well hidden by previous boards & the
management company - but that's spilled milk), and totally mismanaged.
After a 5 month investigation (including a Reserves study) we are going for
a special assessment to pay our bills & get things under control. I'd like
to help you, but don't understand your relationship to the board, or how you
want to help them.
Christine
"cookoonest" <cookoonest@hotmail.com> wrote in message
news:Ivc8b.54076$IJ6.1885833@twister.socal.rr.com. ..
> Gerry,
>
> I double checked the CC&R's, based on your comment, and do not find
anything
> regarding a requirement for a Homeowner vote prior to a loan being made
by
> the Association.
>
> Even if there were, our Association is in such bad shape financially that
it
> would not be in anyone's best interest to vote a loan down. If we were
able
> to get one.
>
> Larry
>
>
> "GerryBrace" <GerryBrace@yahoo.com> wrote in message
> news:3F6133DE.6010201@yahoo.com...
> > You should check your CC&R's. They may required a vote of the homeowners
> > or first morgagees before a loan can be undertaked.
> >
> > cookoonest wrote:
> >
> > > Your quote:
> > >
> > > [Generally comes from boards not providing for replacement reserves.
> > > Boards don't seem to understand that keeping assessment low is not one
> of
> > > their
> > > duties! It does make them popular for awhile BUT here comes the need
> for
> > > that
> > > money.]
> > >
> > > You could not have hit the nail on the head more accurately.
> > >
> > > We (my wife and I) have been the bad guys for 3 years trying to inform
> > > Homeowners of what was happening. They refused to listen saying such
> things
> > > to us as "Give them a chance" and "SHUTUP". They still do not know
what
> is
> > > happening but may soon find out if they are smart enough to understand
> it.
> > >
> > > Unfortunately the Board may get away with their transgressions by
> presenting
> > > their (loan) "Fix" as just a small monthly payment. Then they can say
> "See
> > > it wasn't so bad after all". And everyone will go along with their
> business
> > > while the incompetence continues until another loan is required.
Giving
> this
> > > Board more money is not going to solve the problem. Memories are short
> and
> > > this Board will get re-elected year after year.
> > >
> > > I really blame the Homeowners as much as I blame the Board. The
> Homeowners
> > > deserve what they are getting. Only problem is that I am one of them.
> > >
> > > Maybe they will get turned down for the loan and have to face the real
> > > music. Any legitimate lender looking at our financial situation over
the
> > > past 3 years should "run for the hills".
> > >
> > > It is sad that people buying into this, very expensive complex, will
> > > probably ignore the information regarding the financial status,
provided
> to
> > > them during Escrow, and then yell and scream "Law Suit" when they find
> out
> > > later.
> > >
> > > Thanks for your info and re-enforcing the thoughts I suspected on the
> loan
> > > situation.
> > >
> > > Larry
> > >
> > >
> > > "Les Thompson in CA" <lestomcat@aol.com> wrote in message
> > > news:20030911125248.22009.00000781@mb-m04.aol.com...
> > >
> > >>>Subject: Re: Can Association qualify for a loan?
> > >>>From: "cookoonest" [email]cookoonest@hotmail.com[/email]
> > >>>Date: 9/10/2003 4:41 PM Pacific Daylight Time
> > >>>Message-id: <aFO7b.36356$gt1.1291734@twister.socal.rr.com>
> > >>>
> > >>>Thanks for the reply Les.
> > >>>
> > >>>The "assessment" planned here is supposed to be paid in monthly
> paymernts
> > >>>that will be used to pay the loan back.<<<<<<<<<<
> > >>>
> > >>Yes, that is the way it works.<<<<<<<<<<<<<
> > >>
> > >>>If the Association were to default on this loan, or if a number of
> > >>>Homeowners defaulted on their monthly payments, what could the lender
> do?
> > >>>The Association owns no assets and threatening the Association's
credit
> > >>>wouldn't matter one way or the other to the
> > >>>
> > > Association.<<<<<<<<<<<<<<<<<<<
> > >
> > >>The lender would do the same as the association would do if you don't
> pay
> > >>
> > > your
> > >
> > >>assessments. That would be to place leins on the property of the
owners
> > >>
> > > and
> > >
> > >>that could lead to the taking of the owners property and the sale
> thereof
> > >>
> > > to
> > >
> > >>satisfy the loan.<<<<<<<<<<<<<<<<<<<<<<<<<
> > >>
> > >>>If there was a default could the lender come in and start collecting
> the
> > >>>assessments? How can they do this?
> > >>>
> > >>>Sounds like a big risk to the Lender and they probably charge a high
> > >>>interest rate for this. I am also assuming they will take a very hard
> > >>>
> > > look
> > >
> > >>>at our financials, which are a disaster.<<<<<<<<<<<<<<<<
> > >>>
> > >>True and keep in mind that any association seeking this type of loan
is
> in
> > >>trouble. Generally comes from boards not providing for replacement
> > >>
> > > reserves.
> > >
> > >>Boards don't seem to understand that keeping assessment low is not one
> of
> > >>
> > > their
> > >
> > >>duties! It does make them popular for awhile BUT here comes the need
> for
> > >>
> > > that
> > >
> > >>money.<<<<<<<<<<<<<<<<<<>G<
> > >>
> > >>>I am not on the Board, fortunately, so am not directly involved.
Having
> > >>>
> > > some
> > >
> > >>>knowledge of the (legitimate) mortgage lending business, made this
> sound
> > >>>kind of hokey to me.
> > >>>
> > >>>Larry
> > >>>
> > >>>
> > >>>be
> > >>>"Les Thompson in CA" <lestomcat@aol.com> wrote in message
> > >>>news:20030910123355.22009.00000735@mb-m04.aol.com...
> > >>>
> > >>>>>Subject: Can Association qualify for a loan?
> > >>>>>From: "cookoonest" [email]cookoonest@hotmail.com[/email]
> > >>>>>Date: 9/9/2003 4:15 PM Pacific Daylight Time
> > >>>>>Message-id: <mat7b.46784$IJ6.1677763@twister.socal.rr.com>
> > >>>>>
> > >>>>>Our Townhome complex is in financial trouble and the Board has
stated
> > >>>>>
> > >>>that
> > >>>
> > >>>>>there are Companies that will provide us a loan. We are located in
an
> > >>>>>upscale community in California.
> > >>>>>
> > >>>>>This seems odd as my understanding is that, in order to get a Real
> > >>>>>
> > > Estate
> > >
> > >>>>>loan, you normally need some kind of collateral.
> > >>>>>
> > >>>>>Are there Companies that will do this?
> > >>>>>
> > >>>>>What would the Association's collateral be in qualifying for such a
> > >>>>>
> > > loan?
> > >
> > >>>>>If it requires that each Homeowner accept a lien on their unit,
does
> > >>>>>
> > > each
> > >
> > >>>>>Homeowner have the right to agree or disagree to this?
> > >>>>>
> > >>>>>Does every Homeowner need to agree to get such a loan?
> > >>>>>
> > >>>>>Is there anything in the law that addresses this issue?
> > >>>>>
> > >>>>>Thanks<<<<<<<<<<<<<<<
> > >>>>>
> > >>>>Several banks make these loans. Union Bank of California is one.
> Call
> > >>>>
> > >>>Mark
> > >>>
> > >>>>Reider, 1.800.846.5821 or Pamela Hazard, 1.800.669.8659.
> > >>>>
> > >>>>The assessments become the "collateral".
> > >>>>
> > >>>>In most instances the board has the authority to make the loan.
> > >>>>
> > >>
> > >
> > >
> >
>
>