[graciegirl]

Originally Posted by outlaw

You may want to check with your bond broker. I was looking at villages bonds also. Here is what I found: Most of the bonds have a date far out; yours may be 2030, 2040, 2050. There is also a callable date of maybe 2020 or something like that, when the bond can be called anytime after that date. There is also a provision in most, but not all, of these bonds that allows the bond to be paid off much sooner, even as early as six months or less after you purchased it. It's called something like "extraordinary circumstance", or something like that. Basically, whenever enough people pay the bond off, several of the bonds are called in and paid off. The risk is that if you paid a premium for the bond, which you probably did, then you could lose money if it is paid off in six months, or three months, or whenever, but you can calculate when you would break even. That's the way I understand how these bonds work. If you don't specifically ask the broker about this possibility of early payoff, they may not tell you. I had to talk to a bond broker at USAA to find this out.

You can pay that bond (the one for the cost of the infrastructure) off the day you close if you wish.(Well actually the day it comes due I think which is tax bill time) We paid cash for both homes but kept the bond so that if we decided to move again within The Villages we would not have to add the bond price to the asking price of the home. Many people do this.