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Subject: Can you sell your unit during litigation with your HOA
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Author Messages
GuyM1
(Ohio)

Posts:278


01/26/2019 7:52 AM  
Being the Plaintiff in a lawsuit against the HOA is it possible to sell the unit during litigation without losing any standing. The suit is for damages done to me and my unit from mold, water damage, and sinking foundation. It includes all repairs to the common areas too. I know if I sell the suit would need to change because of not owning the unit anymore.

Second, would the Association at the least have to fix the common areas for the new owner?

Ohio
MelissaP1
(Alabama)

Posts:8281


01/26/2019 8:50 AM  
Well if you sell then your no longer a member... Plus suing your HOA is suing yourself and your neighbors. Thus making them also being sued. Which should be information that is revealed to other members and possibly potential owners if asked.

For the HOA fixing the common property for the new owner? That will become their battle once they become a member by buying the home.

Think of a potential buyer like this. It's a person who walks by your house and says "Nice house is it for sale"? They are NOT members of the HOA. So not entitled to HOA business. It would be up to the HOA board to decide what information to give out. The CC&R's/Articles of Incorporation are PUBLIC documents. So they can go to the courthouse to get them.

There is a form called a PUD form. Depending on what kind of loan the potential buyer is applying for, the lawsuit would be disclosed. Which this form goes to the banking institution to evaluate risk. They may not loan the money or raise the rate to do so. There are other things like unpaid dues etc... also reported on that form. FHA is the one that uses it the most. Fannie Mae and Freddie Mac may.

So sell your home and move on. You may have to fix the issue yourself or negotiated terms with HOA/buyer. The lawsuit doesn't help you much at all unless your staying.

Former HOA President
GuyM1
(Ohio)

Posts:278


01/26/2019 9:25 AM  
They were simple questions and really didn't need your famous phrase.

Just was looking if anyone has seen or been involved with this scenario?

Looking at unit sales it seems that the Association has to do repairs before the sale will go through so was looking would it be done in this scenario?

So if I have several hundred thousand at stake I should just settle for $80,000 and walk away so the Association can prosper from all the damages they didn't repair?

Why would a new owner want to take on the fight? Would this not be imprisonment by the HOA?

RoyalP


Posts:0


01/26/2019 10:42 AM  
? What does your attorney say ?

Surely you have one if the issue is 'several hundred thousand dollars'.
AugustinD


Posts:1750


01/26/2019 10:57 AM  
If the lawsuit has been filed, then you do not lose standing by selling your unit. Make sure all the infrastructure problems are well-documented before you close on the sale. Try to document the comps in your area well, in case you are selling with a unit that is damaged and therefore doing so at a discount. The difference between your comps and what you sell the unit for will help determine damages in the lawsuit.

I do not see how the suit changes just because you no longer own the unit. At some point you put it in the court record that you no longer own the unit.

Who did the damage to the common areas? If the HOA and you agree that the HOA did the damage to the common areas, then the new owner would have to pursue repairs by the HOA on his or her own. Depending on the circumstances, there may be other options to get the common area repaired.

If the HOA and you dispute who is responsible for the common area damage, and you want out of there, then it may be best to pay for all the common area damage and then add this to the damages in your lawsuit.

MarkM31
(Washington)

Posts:459


01/26/2019 11:47 AM  
Posted By GuyM1 on 01/26/2019 9:25 AM
They were simple questions and really didn't need your famous phrase.





Yes

Posted By AugustinD on 01/26/2019 10:57 AM
If the lawsuit has been filed, then you do not lose standing by selling your unit. Make sure all the infrastructure problems are well-documented before you close on the sale. Try to document the comps in your area well, in case you are selling with a unit that is damaged and therefore doing so at a discount. The difference between your comps and what you sell the unit for will help determine damages in the lawsuit.

I do not see how the suit changes just because you no longer own the unit. At some point you put it in the court record that you no longer own the unit.

Who did the damage to the common areas? If the HOA and you agree that the HOA did the damage to the common areas, then the new owner would have to pursue repairs by the HOA on his or her own. Depending on the circumstances, there may be other options to get the common area repaired.

If the HOA and you dispute who is responsible for the common area damage, and you want out of there, then it may be best to pay for all the common area damage and then add this to the damages in your lawsuit.





That
GuyM1
(Ohio)

Posts:278


01/26/2019 4:05 PM  
Yes, already talking to a company that buys houses for cash. They said they have done all the comps and damages to my unit and will give me about 2/3rds under market value. They will fix all unit damages and want to know if the association will fix common areas so they can fix inside to get it rented during litigation and possibly sell after litigation. If they fix common area they take that out of my money. $9000 or more for the foundation repairs, front wall do some flashing work to stop the water from coming in from 2016 new siding which still leaks and replace the rotted entry door cost $4000, Sidewall 2016 leak repaired in 2018 but still leaking to this day and replace all components into the drywall cost $2000, Remove kitchen cabinets, drywall, insulation, and replace all during mold redemption cost $10,000 and up depending on if carpets would need replacing. That's about another $25,000 off my money. So lets say $170,000 MV I would end up with $75,000 and pray I get the difference back in full.

Thanks,
GuyM1
(Ohio)

Posts:278


01/26/2019 4:05 PM  
Yes, already talking to a company that buys houses for cash. They said they have done all the comps and damages to my unit and will give me about 2/3rds under market value. They will fix all unit damages and want to know if the association will fix common areas so they can fix inside to get it rented during litigation and possibly sell after litigation. If they fix common area they take that out of my money. $9000 or more for the foundation repairs, front wall do some flashing work to stop the water from coming in from 2016 new siding which still leaks and replace the rotted entry door cost $4000, Sidewall 2016 leak repaired in 2018 but still leaking to this day and replace all components into the drywall cost $2000, Remove kitchen cabinets, drywall, insulation, and replace all during mold redemption cost $10,000 and up depending on if carpets would need replacing. That's about another $25,000 off my money. So lets say $170,000 MV I would end up with $75,000 and pray I get the difference back in full.

Thanks,
GuyM1
(Ohio)

Posts:278


01/26/2019 4:22 PM  
Yes, I have an Attorney and he said I would be ok but didn't know how it would work with all the needed repairs. So I was just reaching out to see if anyone knew. My Attorney is young and doesn't know all the ins and outs but he defiantly is learning here.

Isn't this what this forum is for? To learn and pass on experiences!

Thanks,
MarkM31
(Washington)

Posts:459


01/26/2019 10:00 PM  
Posted By GuyM1 on 01/26/2019 4:05 PM
Yes, already talking to a company that buys houses for cash. They said they have done all the comps and damages to my unit and will give me about 2/3rds under market value. They will fix all unit damages and want to know if the association will fix common areas so they can fix inside to get it rented during litigation and possibly sell after litigation. If they fix common area they take that out of my money. $9000 or more for the foundation repairs, front wall do some flashing work to stop the water from coming in from 2016 new siding which still leaks and replace the rotted entry door cost $4000, Sidewall 2016 leak repaired in 2018 but still leaking to this day and replace all components into the drywall cost $2000, Remove kitchen cabinets, drywall, insulation, and replace all during mold redemption cost $10,000 and up depending on if carpets would need replacing. That's about another $25,000 off my money. So lets say $170,000 MV I would end up with $75,000 and pray I get the difference back in full.

Thanks,




You are going to have a problem showing actual damages if you sell to a company the un-repaired house at a deep discount to an investor who will later fix it up. You better spend some money and get an appraiser to give you a full report including what the house would go for fully restored to it's pre disaster condition.

MelissaP1
(Alabama)

Posts:8281


01/27/2019 5:39 AM  
You can't sue for damages if you haven't proven you have paid for them or incurred them. So do you have the estimates or bills for the repairs? The court ONLY makes one "Whole" NOT a profit. Damages are what are awarded. Which is the amount of money you had to pay to fix/address the issue at hand.

Now as far as Mark is saying, that is another issue. You would have to prove that your home value was impacted by the necessary repairs/condition. Most likely only way to do that is by selling it or proving potential buyers directly did NOT buy because of condition. Which will be very difficult to prove. Using a place that will buy a home in "any condition" doesn't help your case much

Basically, all can say is your best selling your house by either paying the repairs or discounting to compensate for the repairs that are needed. Waiting on to sue your HOA for compensation is just a long lost battle that no one wins. If you win, expect a special assessment to come your way...

Former HOA President
LetA
(Nevada)

Posts:711


01/27/2019 8:52 AM  
Honestly I would wait it out. Selling your house to the we buy ugly houses is like going to a payday loan center, you are the one that will get hosed.

JohnC46
(South Carolina)

Posts:8419


01/27/2019 11:44 AM  
Posted By LetA on 01/27/2019 8:52 AM
Honestly I would wait it out. Selling your house to the we buy ugly houses is like going to a payday loan center, you are the one that will get hosed.





I agree.
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