EXODUS FROM PARK MEDITERRANIA AFTER GLOOMY BUDGET ANALYSIS
As you know Alex Taylor's Budget Analysis dated 2/29/04 was mailed out just before the 4/29/04 Board of Directors meeting by the swimming pool that was attended by a much larger number of owners than usual. Remember in the Budget Analysis he discussed Park Mediterrania was over budget and money in the operating and reserve accounts would not cover the current spending patterns of the board. Alex Taylor gave recommendations such as raising the association dues and spending less money by closing the pool and spa.
Ever since I moved in here three years ago I have been following the Press Enterprise listings of Home Sales for Park Mediterrania. On 9/12/04, a Sunday, the listing covered home sales from 6/24/04 to 7/29/04. I have never seen so many Park Mediterrania condos sold. Apparently Alex Taylor's Budget Analysis recommendations and his admitting at the meeting that the board mismanaged the money, did spur an increase in owners putting their condos up for sale. In that short period of time 5 of our 142 condos sold with prices ranging from $117,500 to $175,000. I also have never seen such a big difference in sale prices. I heard back then that a few condos dropped out of escrow and other buyers had to be found. I wonder if the sellers were forced to lower their asking prices after the first escrows failed. A rumor that I heard was a buyer's income was not enough after the association dues went up. Remember our $319 association dues means this amount is taken away from whatever the maximum mortgage a buyer pre-qualifies for so when the association dues went up $53 the maximum mortgage went down $53 and the pool of qualified buyers decreased.
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