Published on our April 2023 Newsletter
Question: “Why are many condos sales cash sales only?”
Chris’ Answer:
After Hurricane Maria in 2017, insurance companies paid claims which were sometimes substantial. This is why you have insurance and why insurance premiums are usually included in HOA Fees. Many insurers decided to raise their premiums in subsequent years. Condo complexes handled those rate increases in different ways. Some passed them along as either increases in the monthly HOA fees or as special one time assessments. Some HOAs reduced their premiums by increasing their deductibles or by lowering the amount of their insurance coverage. This caused some unintended consequences.
Lenders want the properties they finance to have a certain amount of insurance coverage. Some lenders have become unwilling, in the short term, to lend on some complexes until these issues can be resolved by the insurers and individual HOAs. Condo Boards, and often special Condo Committees, are currently reviewing these issues, and working with the insurers to make adjustments to their coverage so that lenders are satisfied.
Contact us with any questions about home buying on St. Croix. We have worked with many Buyers on and off the island to purchase their dream home on St. Croix. We can help you with every step of the process.