Hardship? You got the unit FREE. Since you were obviously overpriced to start with, you are apparently just in it for a quick buck. What's wrong with selling it at market price (and it WILL sell) and taking that money to the bank. You seem to have unreasonable expectations for financial returns on something you never invested in. Put your big-boy pants on: quit looking for 'outs' and face reality. Be thankful your mother left you something. All properties in the USA have gone down. Most of them were paid for by the resident, however, not by someone else.
Jerry, I'm curious - how do you know that the poster wasn't the one who actually paid for his mother's condo?
Sounds like the Coa and the owner of the unit there is a double standard. The owner is a shareholder regardless of how he obtained the Condo. The renting of the Condo should apply to the owner as well as the Corp. Who approved the COA to rent out the foreclosed Condo's?
I don't work well with grey areas or rule bending. Two plus two equals four... not *almost four*. I feel the same for condo unit owners. If a condo association starts handing out hardship exemptions, that is really opening up a can of worms that should never be opened. Others will want hardship exemptions as well and this will force the condo board to start playing "Judge Judy" to make decisions based on various levels of hardships.
In defense of the poster, I am curious as to why others can rent while the poster cannot. If there is not renting, then everyone, including banks and HOAs, should follow the same rule.
Read your documents, all of them. You must make sure that the documents allow the Board to rent a unit. It seems unlikely that the Board can rent and an owner can't. In most states, the documents would have to be changed to allow renting and that is a Unit Owner decision, not the Board. Anything to do with unit use, in my opinion would require a unit owner vote. Read your documents, the Board may not the right to rent. It seems like "Selective Enforcement" of the no renting section of your documents.
Jerry, I'm surprised that you feel the necessity to attack someone who has come to this site for help. For all we know the condo might not be paid for and the new owner is having to come out of pocket. Delicious, maybe you need to be more specific. Is there a bylaw forbidding rent to own, or, can a family member live in it until it sells? I say hire an attorney to find out why the BOD can rent out units and you can't. Good luck.
I am sorry you were attacked by Jerry for absolutely no reason.
Since we don't know the details of your situation I am going to assume that this is really a hardship.
Here are few things you can do. It doesn't mean that your HOA will allow you to rent it but if you show them that you are serious they might.
- read your documents and look for language that permits the association to rent property while not allowing it for anyone else. I doubt you'll find it. If it's not there you can make a case of selective enforcement.
- you said two units are in foreclosure. were they foreclosed by the association or by the bank? who owns them now? if it's the bank that owns them and association allowed it to be rented you have a case of selective enforcement
- request copies of minutes from the meeting where your case was discussed. is it properly documented? was there a meeting? was there a quorum? were you notified of the meeting? were you allowed to address the board? If they violated your governing docs or state laws while making the decision - their decision is not valid.
WA State law allows the Association to rent units obtained by non-judicial foreclosure (possibly judicial as well, but I do not remember for certain). If this same is true where you are this may explain why your Board is renting out units - then again it may have a set of double standards. Do thoroughly read your Association's governing documents and look into your state's law on foreclosure, both judicial and non-judicial.
Also, possibly a lease option or seller carried contract may be considered a sale. Check with an attorney to find out what is possible for you.
Good luck, and like others I am sorry for the attack.
Lynn brought up an excellent point which I completely forgot about.
Since your association is not playing ball with you you can do the same. There is a way to write your lease agreement in a way that it will be considered a purchase contract.
I am not a big proponent of going around governing docs, but if your association is not being reasonable why should you.
Basically you write a purchase contract with your renter where they are 'buying' your property but only after a year of living there. The money they pay as rent is their 'option'. Not the entire amount has to be an option.
Talk to a decent real estate agent in your area and they can help with a contract.
It might be difficult to explain why you are doing this to a renter, but might be worth it.
Well - to Jerry - I would put on my "big boy pants" but in my case it would be a skirt. You are just as rude and dismissive as my condo association board - thanks for sharing your angst. As for the other comments I received, thank you, they were most helpful. After some research, it turns out the condo board does have the right to rent a foreclosed unit they have taken back from the bank - according to the Illinois Condominium Property Act here in Illinois:
"(i) Unless otherwise provided in the declaration, the members of the board of managers and their successors in office, acting on behalf of the other unit owners, shall have the power to bid on the interest so foreclosed at the foreclosure sale, and to acquire and hold, lease, mortgage and convey it."
So I will continue to pay the monthly assessment and electricity on the condo until it sells - there is no mortgage - the unit is paid for - the monthly $$ I have to shell out is an increasing hardship for me but I have no choice but to pay. There are many people looking at the unit but no offer as of yet - fingers crossed it will happen soon. Thanks again for all the positive feedback I received.
don't give up so easily. The statue you quoted may not apply. It means that they association has a right to deal with a property in a certain way. It doesn't say that the association is exempt from its own rules associated with rentals.
You need to read your governing documents. Remember your governing documents can be more restrictive than your state law as long as it doesn't conflict with a state law.
Sorry you were attacked. Unfortunately sometimes a person who inherits a condo might not be in a good financial situation-job loss, work cut backs, limited income. Along with the inherited condo, comes the need to be financially responsible for condo fees; special assessments etc.In additional to ones own financial obligations. But you have been given some good advice-and I wish you all the bestl
Robin, it is definitely not anyone's right (i.e. Jerry) to tell you what you should or shouldn't do with your property - especially when the question was not: "Should I just sell my condo for less?.." - In addition to all that was stated above, wouldn't it be possible for you show the board your condition of hardship?... and perhaps request a 2 years max lease - for a time until the majority of foreclosures should be off the market (thinking really optimistically) - I would think that it is NOT in the interest of anyone to see properties sell for way below what they could fetch in healthier times - I'm not a REA, but I would think that prices are based on what properties sell for historically in that area - and selling a property at a low price could possibly hurt those in your association (and the neighborhood) who may decide to sell even in two years...
First off, my condolences on your loss. I am also in IL and here is some insight into why perhaps the Board is renting those units.
I would bet my last $ that the people who owned those two units going in foreclosure stopped paying their association dues quite a while back. They may owe the association thousands and thousands of dollars. The association has a right (after they get a judgement in court) to take posession of the units and rent them out out to recoup their (and by extension, your) losses.
You are also a member of the owner community and as such should be able to go to the next meeting and talk to board members so that you are sure they are aware of your situation. If there are many units or if they board does not know your Mom passed away, they may not be aware of the change in ownership. Of course I assume that there is at least one reasonable person on your board. Surely allowing you to rent is preferable to having another foreclosure unit to deal with.
If you cannot personally attend a meeting get the names of those on the board and write them a personal note explaining that you have inherited it. I wish you luck.
hoas'condo and owners
if done wright can rent to pay all condo expences untile sold. this helps other owners on there fees too run the condo. check it out. state statue
Iin own 1 unit in a 2 unit condominium. The owners in the other unit recentily informed me that they bought a new home and would be renting out their unit, in 6 days.I informed them that I could not agree to letting them rent, as stated in our condo documents, no leasing or renting unless their is agreement by both trustees. The issue is I have my unit for sale with a real estate agent, and further informed them that the rental of their unit would seriously affect the marketability of my unit by limiting the financing options of prospective buyers. As of January 1st the renters have arrived and the Condominium #1 Master Deed has been violated. I am under advisement of both a real estate attorney and lidagator, in order to inforse the law,it will cost me between $90,000-$120,000. This is totally outragous... are their other options and avenues to look into? Please advise