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Permalink Reply by Kristy Hamilton on July 28, 2011 at 2:22pm

Can you put the HOA fees under the 1300's on page two of the HUD whereas it isn't a lien, but a closing cost?  Just thinking out loud.  Named "Unpaid HOA Fees - $3000" charged to the seller's side.  Kristy

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Permalink Reply by Sandra Allen on July 30, 2011 at 1:21pm

Would the HOA accept an attorney drawn up agreement between HOA and new buyers CONTINGENT on the settlement of the transaction for the 2700.00?  Since HOA just wants to stick their hooks in someone for the difference, it may work.  A reminder that will be receiving a much larger amount than if it goes to foreclosure, they will have a property occupied vs. sitting vacant and a paying home owner going forward may work?  Let us know how it works out.

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Permalink Reply by Bryant Tutas on July 31, 2011 at 12:51am

Hi Eric. I'm really surprised they are standing firm on that. As you know Florida is a super lien State and because of this that HOA lien will get paid in full if the property goes into foreclosure. I just had a $15,000 HOA lien paid in full by Chase.

Whether or not the one you are referring to is a super liens depends on several factors. Here's brief synopsis:

• A condominium lien, regardless of when recorded, relates back to the later of the recording date of the original declaration of condominium or April 1, 1992. The effect of this super lien priority is that condominium assessment liens can leap frog second mortgages, construction liens and judgment liens thereby giving the association greater payment priority. Homeowner association liens are not accorded this same super lien status by Statute but rather their priority is controlled by the language contained in the governing documents of the association.

Now having said that can't the HOA just write 2 different letters? One to the buyer as an agreement to be responsible for the $2,700 and one to the seller agreeing to release the lien for payment of $300? Have each letter reference the other and then place both amounts on the HUD on their respective sides. Call the HOA attorney and see if he has any thoughts on how to accomplish this. I'm sure they want their money too.

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Permalink Reply by Tni LeBlanc (805) 878-9879 on July 31, 2011 at 2:04am

Bryant,

 

I just love your common sense approach.  Sometimes these folks tie agents so far into knots we can't see a way out. 

 

I just love your "find a solution" attitude. Your experience shows through.

 

Tni

Bryant Tutas said:

Hi Eric. I'm really surprised they are standing firm on that. As you know Florida is a super lien State and because of this that HOA lien will get paid in full if the property goes into foreclosure. I just had a $15,000 HOA lien paid in full by Chase.

Whether or not the one you are referring to is a super liens depends on several factors. Here's brief synopsis:

• A condominium lien, regardless of when recorded, relates back to the later of the recording date of the original declaration of condominium or April 1, 1992. The effect of this super lien priority is that condominium assessment liens can leap frog second mortgages, construction liens and judgment liens thereby giving the association greater payment priority. Homeowner association liens are not accorded this same super lien status by Statute but rather their priority is controlled by the language contained in the governing documents of the association.

Now having said that can't the HOA just write 2 different letters? One to the buyer as an agreement to be responsible for the $2,700 and one to the seller agreeing to release the lien for payment of $300? Have each letter reference the other and then place both amounts on the HUD on their respective sides. Call the HOA attorney and see if he has any thoughts on how to accomplish this. I'm sure they want their money too.

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Permalink Reply by Eric Mieles on July 31, 2011 at 2:29am

@ Tni, No nots tied for me here. The two letter solution is exactly what's needed however what do you do when the Jr lien holder is being extrremly stubborn and not either A.) Willing to itemize (Per the investor request) B. Write two letters??

 

I have run into this directive before and I'm not sure if it's just certain files that Freddie has but it's very difficult sometimes to meet their requirements if the Jr lien holder doesn't want to play.

 

The HOA states they don't care who gives them their money, they just want it. The problem is if we get an itemized payoff showing funds coming from the buyer under this directive, Freddie is likely to say "Hey if they want to pay extra on liens then those funds should come to us instead".

 

So being able to get two separate letters 1) Showing the 10% coming from the investor as a release of lien. This letter will go back to US Bank to submit to the investor and 2) a letter for the remaining going to the buyer who will contribute the funds.

 

This is the way to get over this however again it requires a Jr Lien holder to write two different letters. You would think that it wouldn't be the biggest problem but as you all know we can think whatever we want!! lol.

 

@Bryant, Thank you for the help

 

@sandra agreed and working on it

 

@Kristy yes mam I always include it in the 13's.

 

Thanks everyone for the help and guidance. Much appreciated. I will keep you informed and please share if you guys are running into this problem more often with GSE. This is the second and as I said I know some others that are battling this as well. Have a great day.

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Permalink Reply by Kristy Hamilton on September 9, 2011 at 3:47pm

Well, if the short sale lender allows 10% of the lien, that should be $640, not 10% of what you negotiate the HOA dues down to.  So, you get the HOA dues down to $3000.  $3000 less $640 is $2360.  Does the HOA have a Lis Pendens of public record?  Depending upon the Buyer's mortgage, you won't be able to put the remaining balance on the HUD as a charge to the buyer.  Can you give the Buyer a closing cost credit from the seller for $2360, the Buyer paying HOA dues in the 1300's on the HUD?  Again, would need to check with the buyer's lender.  Also, would need to keep the closing cost credit at or below 3% of the sales price.  So, if the $2360 is more than 3% of the sales price, might not work.

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