565 E. Arrow Highway #39
Azusa, CA 91702-5765
July 27, 2009
US National Bank As Trustee for
BNC Mortgage Loan Trust 2006-2
Regarding: 225 W. Central Ave. #C Monrovia, CA
To Whom it May Concern,
Here we now are, four and a half months after my offer was accepted, four and a half months of my lender and agent pushing and begging for full HOA disclosure, and I have been notified that with only $1000 in the reserve account not only my lender, no lender would make a loan on this property. It looks like this complex will take years to come far enough in the black for banks to invest in it, if ever. Even if you tried to sell this property to an all cash buyer, that buyer will still demand the financials of the complex to confirm that it is not heading into bankruptcy. And since there are no financials....
So now I need to look at it as an unemotional investor. An investor willing to look at the far long term and with the understanding of the financial risks I would be taking, just like buying into the stock exchange. And for the right price/investment I would be willing to do so.
Before we talk price, I want to be sure the following is understood by all parties involved in the sale of this condo: unlike a normal sale where an REO seller and it’s agent disclose nothing, in this case both you as seller and your agent know all the negatives about this complex and since you do have first hand knowledge will be required to tell all potential buyers about everything.
You will be required to tell all buyers that there are no meeting minutes since 2005 because the HOA doesn’t have meetings. There haven’t been financial records kept since then too, plus that the reserve was depleted for repairing the plumbing and now there’s only $1,000 in the bank (mind you, the HOA won’t prove any existing bank accounts). That’s in addition to having to hand over a copy of my inspection report and if you don’t do it, by law your agent must attach it to her Agent Visual Inspection form.
All this means is that the next buyer, unlike me, must be told everything you now know, right up front. And really, how many buyers would step into this mess? What investor would put hundreds of thousands of dollars of cash into an investment that can not be liquidated?
So now I throw out to you that I will pay you $15,000 cash, close escrow as fast as title and escrow can work it out. I will take the condo as is, both physically and financially. If this can’t be worked out, I insist on being reimbursed for all the monies I laid out for this purchase. Although normally a buyer can’t get these fees reimbursed by an REO seller, I’m looking at this situation, where you and your representatives were very lackadaisical about getting us the documentation you promised in our contract. If it wasn’t for my lender rep no financial information would have been forthcoming.
ETA: They turned it down. So that's that.