LETTERS
Dear Neighbors,
In their relentless campaign to
send our PROPERTY VALUES plummeting even lower, the United Mutual Board has
just passed yet another irresponsible resolution. In another closed session (where the Board handles
controversial matters, and where members are not permitted), new criteria were
imposed for buyers wishing to qualifying to buy a co-op . What we share with
you is not rumor. The
new requirements listed below have been confirmed by Jerry Storage, the General
Manager of PCM.
1. Our Board has decided without
input from the mortgage or real estate industry, that United
will no longer accept equity in a residence located in the United States as an
asset for qualification to buy in Laguna Woods Village. So, those few potential buyers who are fortunate enough
to have home equity in this historically lean housing market, are automatically
disqualified.
2. No longer will our Board accept
any assets held outside US borders! That means foreign nationals (Canadians, Australians,
Koreans, Japanese, Britts, etc.) with the means and the interest in living here
are no longer welcome. The new law mandates that they will no longer qualify to
buy a co-op unless they move their money to US soil. Money
held in US banks on foreign soil, no longer qualifies. This
new law is not only discriminatory but a terrible idea as it reduces even
further the pool of qualified co-op buyers.
3. Our
United Board has now instructed PCM not to do pre-approvals for prospective
buyers. Linda Woods, Membership
Coordinator for PCM, normally processes approvals and passes them to the Board
for ratification. But now, she is no longer allowed to speak with buyers to
explain the qualifications and answer questions. Why would our overburdened
Board take on this time-consuming task when we have a paid employee who has the
expertise to perform this task and has done so for years?
What are the implications for our future?
- You or your heirs are trying to sell your co-op. The buyer wants to use the equity in their home as part of their asset qualification. The Board says they can’t. For most buyers, a home is their single and largest asset. So your co-op takes even longer to sell and most likely at a lower price, further depreciating your estate.
- Since PCM can no longer do pre-approvals, does that mean that all applications will go directly to the Board, who will then be able to cherry pick buyers? Who ensures the integrity of the application process? Who verifies information?
- Since this burdensome practice is relegated to co-ops only, doesn't this make a condo in Third Mutual an even more attractive sale?
- These new rules are so blatantly discriminatory that
a cluster of lawsuits against United will surely follow. Is that how we
want to spend our reserve funds? And when our reserves dwindle, there will
most surely be another hike in our HOA fees.
Please consider the following:
Have you ever seen these restrictions on co-ops up for
discussion on the Agenda?
Did you know that only a few weeks ago, our United Board, in
another “closed session”hiked the processing fee for leasing (whether 2 months
or 6 months) from $110 to $300?
Without considering home equity, our Board has made the
buying of co-ops available ONLY to buyers with ALL cash?
Did you elect our Board to create prejudicial and
discriminatory practices on your behalf?
Do you want your co-op property values, affecting you,
co-owners or heirs, to plummet?
What motivates the majority of Directors on our Board to
pass such harmful, detrimental, and ill-advised measures? Are they woefully
ignorant of real estate matters ... or do they have a hidden agenda? What is it
and why is our Board abrogating its fiduciary responsibility to protect our
property values?
And finally, why do you think that these issues were not
openly addressed?
WHAT CAN YOU DO?
We also ask that you write a
letter to the Globe bpotter@ocregister.com and copy us at PPVppvclub2@hotmail.com so we can track the letters and hold the Globe accountable
for publishing those in support of protecting our property values.
Also CHECK OUR BLOG site http://www.ppv2012.blogspot.com to watch Beldner's 34 minute rant. Then read members
comments and post one of your own.
JOIN US AT THE NEXT UNITED BOARD MEETING --
Tuesday
June 12, 9:30 AM -- AND LET'S HOLD THEM ACCOUNTABLE
FOR THEIR ACTIONS!
If
you would like to send your support for PPV’s goal of replacing four of the
Board members who are running to retain their seats, please make checks payable
to Protect Property Values Club or PPV. You can mail it to:
PPV
P.O. Box 3811
Laguna Hills, CA 92654.
Thank you.
PPV Board
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