ChrisA13 (New Jersey)
Posts: 120
Posts: 120
Posted:
As you may or may not know, banks have a right to know if litigation is pending before entering into an agreement with a potential buyer. Much like in my secret, devious, ethically devoid COA, the lawyers for the COA advise the banks and communicate with them at their very profitable billable hourly rate to advise them of any pending action that may give a bank second thoughts about lending money to a person "investing" in a corporation by way of purchasing a unit/townhouse/condo. Thereby, the banks can PROTECT themselves by refusing to lend money to a person buying a "share" of a corporation through their membership. In short, a bank doesn't want to risk their investment when known risk exists. Fair enough.
Moreover, the FHA (federal government) also has the right in the law to protect THEIR MONEY. To have an HOA/COA get "approved" for FHA loans, there are required disclosures that need to be made by the COA/HOA to the FHA, including disclosure of assets, pending litigation and certain performances of duty. As such, the FHA gets to review and consider the "status" of an HOA/COA before they decided to risk their money in the investment of these corporations by way of mortgages to individual owners. Fair enough.
Now, the owner. They get nothing. No disclosure. No right to know. No seller's disclosure on the COA/ HOA. They walk in blind. "Buyer beware, fool!"
For certain, in corrupt NJ, there is no seller disclosure on the conditions of an HOA/COA when you purchase. If you were purchasing in cash, the HOA/COA doesn't have to tell you a thing about any pending problems, litigation, pending damages or horrors that exist because no law makes them. And yet -- isn't an owner's money just as "green" as the FHA's and the multi-billion dollar banks?! Too bad, potential owner. You buy in blind...with no access to the records... and when it all goes wrong, it just sucks to be you. Ah, the American way!
So, again, the banks and the FHA (the government) are FULLY aware that they need to have disclosure and awareness to protect their ASSETS. Their INVESTMENT. They have a right BY LAW to limit their exposure to loss and future harm. But where are the owner's rights to know before they buy? (Silence.)
Granted, when the owner doesn't get the mortgage because the bank won't lend due to pending litigation, other major issues, liabilities disclosed in secret -- they are beyond lucky in ways they don't even know. But the refusal of the loan wasn't disclosed to protect an owner from harm, the disclosure was there to protect the banks and the FHA.
So the point is: Where is the federal law that ensures that OWNERS have a right to full disclosure (like banks/FHA) before they buy? More importantly, if the FHA (the feds) are clearly capable of realizing potential loss/harm when it comes to their own money by way of federally-backed loans into these COA/HOAs, why don't they put the same rules of disclosure in for potential owners as a general rule?
Here we go again: Banks, protected. FHA, protected. Buyers, good luck to you.
Moreover, the FHA (federal government) also has the right in the law to protect THEIR MONEY. To have an HOA/COA get "approved" for FHA loans, there are required disclosures that need to be made by the COA/HOA to the FHA, including disclosure of assets, pending litigation and certain performances of duty. As such, the FHA gets to review and consider the "status" of an HOA/COA before they decided to risk their money in the investment of these corporations by way of mortgages to individual owners. Fair enough.
Now, the owner. They get nothing. No disclosure. No right to know. No seller's disclosure on the COA/ HOA. They walk in blind. "Buyer beware, fool!"
For certain, in corrupt NJ, there is no seller disclosure on the conditions of an HOA/COA when you purchase. If you were purchasing in cash, the HOA/COA doesn't have to tell you a thing about any pending problems, litigation, pending damages or horrors that exist because no law makes them. And yet -- isn't an owner's money just as "green" as the FHA's and the multi-billion dollar banks?! Too bad, potential owner. You buy in blind...with no access to the records... and when it all goes wrong, it just sucks to be you. Ah, the American way!
So, again, the banks and the FHA (the government) are FULLY aware that they need to have disclosure and awareness to protect their ASSETS. Their INVESTMENT. They have a right BY LAW to limit their exposure to loss and future harm. But where are the owner's rights to know before they buy? (Silence.)
Granted, when the owner doesn't get the mortgage because the bank won't lend due to pending litigation, other major issues, liabilities disclosed in secret -- they are beyond lucky in ways they don't even know. But the refusal of the loan wasn't disclosed to protect an owner from harm, the disclosure was there to protect the banks and the FHA.
So the point is: Where is the federal law that ensures that OWNERS have a right to full disclosure (like banks/FHA) before they buy? More importantly, if the FHA (the feds) are clearly capable of realizing potential loss/harm when it comes to their own money by way of federally-backed loans into these COA/HOAs, why don't they put the same rules of disclosure in for potential owners as a general rule?
Here we go again: Banks, protected. FHA, protected. Buyers, good luck to you.
jk