Questions to Ask About HOAs Before Buying

By Elizabeth Weintraub, About.com Guide, http://homebuying.about.com/od/homedisclosures/qt/AboutHOAs.htm

In her column this morning, Elizabeth Weintraub nicely outlines the things you need to investigate regarding the HOA managing the home/condo you are considering purchasing. While geared to a condo, there are still many “heads up” ideas that even a prospective home purchaser should check into.

Q. If you pulled money out and spent it all on remodeling/adding on to house – does it count as purchase money mortgage?

The 9th in a series of Q + A’s to help underwater homeowners understand rights in Arizona and determine what options (Strategic Default; Short Sale) are best.

A. No, only money borrowed to actually purchase the house can be “purchase money.”

The 8th in a series of Q + A’s to help underwater homeowners understand rights in Arizona and determine what options (Strategic Default; Short Sale) are best.

Yes, the anti-deficiency laws do not take into account whether the purchaser/borrower intended to use the property for personal use or as an investment property.

The 7th in a series of Q + A’s to help underwater homeowners understand rights in Arizona and determine what options (Strategic Default; Short Sale) are best.

Does a HELOC qualify as “purchase” funds when the money is used to make a down payment on a 2nd house?

No. This circumstance does not qualify because the loan being used to purchase the second house was obtained prior to the purchase of the second house and, in fact, repayment is being secured by a lien on the first house, not the second house.