Quote:
Originally Posted by eweissenbach
In real world terms, if it were immediately prepaid it would still be more. For example, I would be paying say $300k for a home with a $30k bond - if I get a mortgage the mortgage will be based on a $300k sales price rather than $330k. Thus I would have to come out of pocket for the down payment PLUS the bond payoff. After paying off the bond if I had to sell right away for some reason, if I asked $330k, (without consideration for sales commission of 6%) I would be at a disadvantage competing with new homes just like mine advertised at $300k. If I sell ten years down the road and a potential buyer looks up what I paid for the house, the county site will reflect that I paid $300k, which may affect the offer they are willing to make. All of these are costs that I need to be prepared to absorb if I pay the bond off immediately.
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It is my understanding that the homes being built in The Villages of Fruitland Park will have the bond built into the price of the house since Lake County does not allow a developer's bond, per se.
It is also my undertanding that Celebration, the Disney-owned development outside of Orlando, is also a community of CDDs.
I know I read the above information somewhere. Please don't attack me if I mis-stated anything. If I've got it wrong, I'd appreciate being corrected - but not vilified.