HOAFAX™- The report no one wants you, the buyer, to see.
The HOAFAX™ report is a comprehensive financial analysis of a common interest development (CID) or Homeowners Association (HOA).
When a buyer purchases a property within a CID or HOA, they are buying into and become a member a non profit corporation that has all of the following:
- Budgets (that can run into the tens of millions of dollars).
- Board of Directors
- Reserve Accounts
- Reserve Studies
- Special Assessments
- Management Fees
The HOAFAX™ report reviews all of the financials and operations of an association to give the buyers a complete picture and condition of the HOA and its management. Since the meltdown of the mortgage market and crash of the real estate values, many associations have kicked the financial can down the street due to many members being unable to pay their maintenance dues. When this happens, the remaining owners must shoulder the burden of paying when other owners cannot. This failure to reserve enough money has resulted in most associations not having enough money collected from the monthly dues to pay the capital expenditures that are accruing such as new roofs, paint, resurfacing of parking areas, common area repairs for pools and tennis courts, replacing of old plumbing and electrical, and other maintenance items.
The HOAFAX™ report details to the buyer exactly how much the association is deficient, enabling him to renegotiate with the seller before closing on the purchase for the deficits that our report reveals. Virtually every single buyer of a property has the property inspected for defects and deficiencies before closing, and yet never has the HOA financials inspected for those same defects and deficiencies. Most buyers of CID’s do not possess the expertise to review the financials, and only finds out later that the HOA is deficient when the HOA has no other choice but to pass a special assessment. A special assessment is an assessment, either lump sum or monthly, in addition to the monthly maintenance dues to cover the financial short fall that has accumulated. With our HOAFAX™ report, you the buyer will know before closing on the purchase exactly what he is buying into.
So if you’re buying into a CID or HOA, order the HOAFAX™ before you close, and you will find it to be the best $395 that you will spend in the home buying process.
Click here if you would like more information about the HOAFAX™ report that no one wants you to see.