Hud Investment Property. Homeowners Assoc
Hello everyone. I need people's opinion here. I recently purchased a House from the VA in a decent neighborhood. I didnt find out that the neighborhood had a homeowners accociation till the appraisal was done. I saw that the dues were only 70$ a year and figured it was just for maintainance of public areas. Well I close on the house. At the closing there were no papers from the HA to sign or acknowledge. Well I get the house and put in 4k in repairs and get it cleaned up nice. I put a for rent sign in the front yard and have a couple prospects. I am about to take a deposit from a couple who are very interested in renting the house. The other night I have a message on my answering machine from the president of the HA saying. Hey. Read the covenants (which i didnt sign or a agree to) you cannot rent a home in this neighborhood.
What should I do from here. I gotta get this place rented before winter or im in big trouble financially. Should I even mention this to my prospects. Since it is a VA home I can not resell it quickly ( anti-flipping laws) plus my financing has a low % rate and a prepayment penalty. The last thing I want to do is sell this place.
Can they legally due anything? Again. I signed nothing. And was un-aware of a HA.
Thanks for your help[ Edited by dgtop on Date 10/06/2003 ]
What about setting them up with a wrap around mortgage or a lease to own situation? It would show that your intention isnt to rent but to sell the house to the HA, also it would set you up for the sale when the time constraints wear off.
Good Luck,
Kyle