I'm looking at REO condos on homepath.com (the site for Fannie Mae foreclosures, etc). I'm wondering, is it a good/bad idea to purchase a condo with no home owners association? Most of them have one, but I've seen one or two properties now which explicitly are advertised as having no HOA. Is this a good/bad idea?
Bad bad bad idea. Properly managed HOA has rules that regulate usage of the common areas and property; HOA manages repairs and maintenance, insurance and reserve.
Not having HOA means the owners deal with problems on their own, as the problems appear. Need to fix the roof? Assessment. Need to paint the walls - assessment. The roofer fell and broke a leg - liability suit. Huuuuuge assessment.
You really want to deal with that?
I don't understand why so many people want to avoid a HOA. For a condo community they are the interface between the residents and the management company. The board is made up of the residents of the community.
The board follows and enforces the covenants and other documents, makes the budget, puts aside the money for major repairs.
I would never think of buying a condo without a HOA.