If no reserve study, how can I tell if $75k in reserve fund is sufficient? Should I walk away?
In escrow but I’ve just learned there is no reserve study for this 30 unit townhouse-style condominium complex that’s 40 years old. How can I judge if the $75,000 in the reserve fund is sufficient? What I do know is ——>The annual budget is expected to have an 8k net balance at end of year. All roofs were redone in 2013. There’s no pool, elevators, or clubhouse. Complex has asphalt streets that look decent. HOA fee is $300/mo and the HOA board seems very active with maintenance of grounds, painting, roof repairs, new mailboxes, etc. Owners are responsible for doors, windows, unit’s sewer line to main, and all vents from unit. Should I walk or continue with the sale knowing I better save for special assessments to come?
Posted Jun 12, 2023, 6:24 AM UTC
Has the lender asked for the condo questionnaire from the association yet? There are some Fannie Mae / Freddie Mac requirements around reserves fyi. I just lost out on a condo because of this, even though the reserves looked fine to my realtor.
yes. I got a copy of the Fannie Mae form. It confirms there is no reserve study. Will see what happens there.