Buying a Condo? Don't Skip These Steps!

It you like the trendy, city-chic condominums found in many metro areas and you want to be sure to take advantage of the low prices found in this great Buyer's market, make sure your eyes are wide open in making a condo purchase. If you are contemplating purchasing a condominium, be sure to review a long list of documents for the Home Owner's Association (HOA) and other information to make sure that the property you are considering is a solid buy in this challenging market.

The following information is at the top of the must-consider list from condo HOAs:

1. Budget. Examine the current budget, a year-to-date statement of income and expenses, and a couple of previous years' budgets to see how they've changed.
2. Reserve study. Understand the plan for maintenance and how it will be paid for.
3. Special assessments. Ask if there have been any and whether more are planned.
4. Delinquencies. How many owners are behind in their payments? Many lenders say no more than 15 percent of owners can be in arrears or they won't write mortgages in the complex.

Source: Chicago Tribune, Lew Sichelman (08/23/2009)