Condo Homeowner Assn Bankruptcy

[vcmenagerie]

I have lived in my condominium now for 18 years in the State of California. We are now being informed that the Homeowners Assn is facing bankruptcy and they want to eliminate Earthquake insurance in order to eliminate the expense and are planning to use the money not put out for insurance to put into the now failing reserve.

What happens to homeowners when a HOA goes bankrupt and what impact does this have on the property values and ability to sell your home. The place has so many repairs that need to be done that the money extracted from the earthquake insurance will never add up to the millions that are needed for the repairs.

The president of the HOA has been paying himself to do contractor work here and has done cheap work which all is needing replacement in less than 5 years.

I would appreciate any help from any of you who have knowledge in this area. Should I sue if my life investment turns in to a puddle of nothing.

vcmenagerie

[63amysue]

Have you contacted an attorney yet? Find someone in Real Estate. They may give a free consultation. Call around first you never know where it can lead. Get with the other people in the building and sue them or at least file a complaint. I would think someone in the state oversees HOA's. Do some investigeting on your own with the phone and save time instead of driving. Good Luck!

[Stan S.]

I would absolutely find an attorney that would take on a class action lawsuit and also ask which would be more beneficial a class suit or and individual one.
How did the association get to this state of financial woe? Didn't you or anyone else attend the mandatory monthly meetings that are to be held to discuss with the homeowners what repairs are needed to be done, will need to be done, general maintenance up keep issues etc. My big question is why the president wasn't made to be held accountable for all money he spent. Your association was operated in a very poor manner and now everyone will suffer, involvement is the only way to ensure the bi-laws of the association are being adhered to.