I need help and advice with an HOA complication for the sale of my home.

[Kylie Kwon]

Hi! I live in Longmont, Colorado. I made a huge decision to move to chicago, i'm 51 and now an empty nester. I've a new built a life in 2017 after a toxic and unexpected divorce. I went from stay-at-home mom to single raising two kids alone having not worked in nearly two decades. I worked my butt off and was able to buy one home in north boulder and one in Longmont.

I decided to move to chicago so I can enjoy life now that the kids are out of the house. Because no matter how much I think about my future and retirement, you have to also live life. I signed a lease for an apartment in Chicago. Sold my home in Longmont the first weekend it was on the market. 

We were supposed to close on 4/15. I just found out this morning, that my HOA for my home, has a 8% deductible for wind/hail insurance instead of the 5% and that my home is now a non-warranted condo, which was not the case when I bought in 2022. Now more than likely the buyer will back out and the home will need to go back on the market, this time with this restriction for the sale.

I know that I would have never bought this home if I had known it would become non-warranted property. Some of my neighbors don't care and a few are shocked because they had no idea of this change. I'm trying not to freak out but the move happens this week and now I'll have my apartment lease in Chicago while still paying this mortgage. Given the market and now it being non-warranted, I will probably not only not make any money but also lose the downpayment I invested when I purchased. Who knows how long it will take to sell. To have to pay both my new lease and mortgage without knowing how long it will take to sale. And not sure how long it will take to sell. I was prepared for a couple of months of overlap but not this!

I'm trying not to freak out but it is difficult. I need words of wisdom and advice. I'm trying to breathe... any help would be so appreciated!

[Bill S.]

@Kylie Kwon I agree with @Jonathan Klemm to go back to the buyer. Maybe they would be able to buy with another lender if you offered some assistance. They could then work with the HOA to get the insurance limits to conform. I am sure if other owners realize what is happening to their values due to the 3% change in deductible they would climb on board with getting the limit lowered.