HOA delinquency rate a cause for concern?

[Haresh Patel]

An off-market deal fell into my lap for a condo in DFW area. I know the seller and this is last of his rental properties. His ask is very reasonable and ~20% below market (basically wants his outstanding mortgage and closing costs etc). He has had a long term tenant (more than 8 years) and tenant wants to continue to live there. Numbers are good, 1.3% of price every month with Scope to increase to 1.6% based on market rates. Property is 10 years old and in decent B minus neighborhood. pretty safe area when you look at crime stats, but not great schools. It's more like multiple four-flexes. 4 two-storey condos on a slab with a common roof. Everything was going fine till the mortgage company raised a red flag. Delinquency rate for HOA is at 28%. it's a small community with less than 50 condos. I won't get a loan on it but seller willing to do a sellers note or financing if I am still interested. Would you buy given the HOA situation? HOA is professionally managed but seems like no incentive to pay since no real penalty on late payers (e.g. 10% every year). Worried about HOA going belly up in case of large repairs like foundation issues. Suggestions/advice?