Posted by John Merchant on August 31, 2007 at 17:54:25:
From what I read, this foreclosure by HOA or Condo Ass’n is growing about as fast as bank foreclosures so you’re not the only one being hit.
An idea that might work (an old one in bare land acquisition and speculation world)is to work up an analysis of the condo market, looking out 5 years or so.
Then make a list of moneyed guys you know and offer them an undivided interest in your condo if they’d catch up and pay the dues during that time.
Then you’d contract with him/her that in 5 years (or whenever they agree)*, you’d get the property appraised and then with your having right of first refusal, your partnership sells it and the money guy gets his money back first plus 12% per year on his money, then you split the profit 50-50.
Remember there are plenty of people around these days with way too much money in the bank to be comfortable with it there and who might just jump at the chance to take a flier at the condo market…also he/she, knowing you, might be very comfortable with the idea of your living there, taking care of it, keeping it clean and in good repair so he wouldn’t have to worry about renting it.
Chances are that there might be one or two people who own & live in other condos in your condo ass’n right now who’d do that…they’re already sold on its value or they wouldn’t have bought into it.
*get this contract in writing by good lawyer (who’ll see issues you might miss) so there’ll be no future misunderstandings or “misrememberings”.
The lawyer would first check the CA rules and law to see if you could legally convey the condo to “your” LLC or Living Trust, which could then be sold in part to this partner…I recall the Garn St. Germaine Act requires a bank to permit such a conveyance (partial interest) and probably same law would apply to the CA.