Category Archives: Real Estate

Selling or Buying a Condo? Does the HOA have these disclosures ready for buyers?

California Civil Code Section 4525 requires specific important disclosures be provided to members upon request, to give to prospective buyers. Well-run HOAs should have these many disclosures readily available.

Here is a checklist for buyers, sellers, and managers:

Governing documents

CC&R’s, bylaws, rules/regulations, Articles of Incorporation (or statement of non-incorporation), and Condominium Plan or Subdivision Map (not mandatory).

Finances

Annual Budget Report (multiple items, see Civil Code 5300).

Annual Policy Statement (multiple items, see Civil Code 5310).

Assessments

Regular, special and any schedule future assessments.

Financial documents and information

The Annual Budget Report contains important information regarding the association’s finances.

For example, is the association following the recommendations of its reserve study preparer, or is there little money in the reserve fund account, exposing the HOA to future major borrowing and consequently exposing members to future major special assessments? The HOA is required to have a written plan to become more adequately funded, and that plan must be disclosed annually to members.

The Annual Budget Report also includes a summary of insurance. Does the HOA have dishonesty insurance or earthquake coverage?

read more at: https://www.sandiegouniontribune.com/business/story/2021-08-28/hoa-homefront-does-your-hoa-have-these-disclosures-ready-for-buyers

Cities with the biggest share of homeowners in danger of foreclosure

One group of homeowners continues to be behind on their mortgage payments. If that trend should continue, it could threaten the strength of certain real-estate markets across the country.

Many homeowners with mortgages backed by the Federal Housing Administration, or FHA, are delinquent on their homes, according to a new analysis from the American Enterprise Institute, a conservative think-tank based in Washington, D.C.

Around 14.7% of the 7.6 million FHA mortgages outstanding nationwide were delinquent as of May, up slightly from the previous month. Additionally, 10.5% of these loans were seriously delinquent, meaning they were 90 days or more past due and in danger of going into default.

These figures include loans that are in forbearance — at the start of the pandemic, federal regulators and lawmakers set up forbearance programs that allow homeowners to pause making mortgage payments. Those forbearance programs were extended again, allowing homeowners to make an initial request for payment relief until the end of September. Depending on when a homeowner made their first request, they can pause payments for anywhere from six to 18 months.

read more at: https://www.marketwatch.com/story/one-subset-of-homeowners-could-be-in-trouble-here-are-the-real-estate-markets-most-at-risk-11625591292

Calif Extends is Eviction Ban to September 30, 2021

Gov. Gavin Newsom recently extended the state’s eviction moratorium to Sept. 30. It was set to expire June 30. Now many Californians will have more time to find a place to live and financial assistance to pay off their rent.

San Diego County’s eviction ban is more strict than what the state has put in place: Landlords cannot evict tenants if they want to move back into their home, and evictions for “just cause” reasons are very limited. It also has a rent cap of 4 percent for current tenants. It expires in August.

The county’s eviction ban is being challenged in federal court but the judge in the case has not made a decision. The judge is expected to take up the case again in late July.

read more at: https://www.sandiegouniontribune.com/business/story/2021-07-03/san-diego-is-under-a-new-extended-eviction-ban-heres-what-it-means-for-renters-landlords