Bond payment now all up front on new homes???
 

Hello - I heard a "rumor" today that the Villages is now requiring bond payments to be made up front at time of closing in full upon purchasing a new home......How true is this please???

Thanks!

This would be an excellent question for your real estate sales person. That would be the only place to get a definitive answer. Let us know what you find out.

Why can't I not rise to the bait.?
Call The Village Sales Office, Not the competition.

Right. It would have to be the TV Sales Office, since the o.p. said "new" home.

wow and give up all that interest

Well that is how it is done in most new communities - included in the purchase price. Unless there is a substantial increase in model prices don't think this would be true.

It's True
 

I have just received via email all my closing documentation that we need to fill out before closing (Oct 11) on our new home in the Village of Collier. Part of the documentation is a Settlement Statement that clearly reflects the Bond & Maintenance with a coverage from Oct 11/2013 to Sept 30/2014. This amount has been added to the final closing costs. Although we anticipated the annual costs at sometime, we were not forewarned it would be on our closing. It's certainly not a show stopper but it was a surprise.
Gracie - we love you but this one has legs.

Correction...sorry I just looked back at the OP and the reference was total Bond payment and ours was just for the year. So, no you do not have to pay the total bond amount.:doh:

I talked with a Villages sales rep today. He said that there has not been any policy change what-so-ever concerning the payment of the bond on a new house and it is definitely not required to be paid upfront.

We were told by our sales agent, that when we close on our new home, making a cash purchase, that the first year of the Bond is due along with the homeowners ins for that year and prorated amenity fees, garbage, water, sewer, and the one time price of the mailbox keys.
the bond would then be paid yearly in November with the tax bill.

hope this helps!

So, if I pay off my mortgage this year, my bond payment would just become an annual payment included with my tax bill?

Wouldn't this be a question for your bank. RE: escrow.

yes

OR you can move to Lake County (Villages)
 

and pay NO bond!....Yea!

if I pay off my mortgage, I no longer deal with the bank to make payments, nor contribute to escrow. so, does it become direct billed to me with my property taxes. That is basically my question.

thanks jimbo.

All of the infrastructure costs in Lake County must then be built into the sales price. That makes development much more costly in Lake County as the developer must front that cost prior to the first sale.

Many developers fund that infrastructure with cash flow from sales which often results in home owners left holding the bag with unfinished streets, pools, rec centers, etc. as a result of a bankrupt developer.

My sister closes on Tuesday and I would have to say Not True. That would put a real hurt on sales since most new homes you are looking at 20K plus plus.

That is exactly correct.

Interesting. Thanks Steve. And of course the new Villages of Osceola Hills and Belle something are in Fruitland park, Lake County.

Bond
 

So the new homes in Fruitland(Lake County) will not have bonds? The cost of the infrastructure will be included in the sale price.According to Lyle this will be a gift from the developer to all existing home owners.
The Fruitland section should be the final buildout in TV and the sale price will include $20,000 TO $30,000 for the bond.

Cost out of sight
 

If this is true, the homes in the new Village of Fruitland Park will be high indeed! :coolsmiley: Very good for current homeowners----there will be some sticker shock for sure.

If an appraisal is done correctly, this shouldn't be a gift to all existing homeowners. When using comparable sales within the new Lake county area, those sales used as comps will need to be adjusted to account for the bond inclusion in the sales price.

The subject of the appraisal is valued based on whether the bond is paid in full or not.

Is it an advantage or disadvantage to have a break out of the bond as a separate charge? Does it necessarily mean that residents are paying more for a house where all cost are packaged into one price?

Is it more likely that manipulation of price is easier with a breakout or with a single listed price?

We closed 2/14. We paid off the bond. The interest rate was almost double on the bond than the rate of the mortgage. If the bond is included in the selling price, the interest rate, may very possibly be lower. Plus, mortgage interest is a tax deduction and the bond is not.

I'd far rather have the bond as part of the selling price, than a payment at a greater rate of interest.

If you're not paying the bond off it makes financial sense to have it as part of the selling price.

Why not call the sales office to confirm "RUMOR"!

Have you checked with a lawyer regarding the legality?

We've paid a bond in every home we've owned in other states. It was in the price of the LOTS we either bought from a developer or with a used home we bought.

You pay for the infrastructure construction and maintenance, one way or the other. Get over it.

Then there would not have been 30 posts challenging the "rumor"!