I have a seller who has an HOA lien that far exceeds $10K. We attempted to see if the lender would pay the full amount but they stated they would only pay 12 months of the HOA. So, accordingly, we let the HOA know and they stated would accept that and an extra $2300. My seller doesn't have the money to give and the lender has already stated they will only pay the 12 months. I thought about negotiating this with the HOA; telling them, the bank will not pay that amount and will not let the sellers pay that amount. They advised that the law states that in foreclosure matters, the HOA's are only going to get 12 months of back due HOA fees. 

What are your thoughts on that approach to the HOA and negotiating their payoff? 

Thank yo

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Try to negotiate them down as you stated and see what they say. If they don't budge, you have to try to find a middle ground and contributors towards HOA lien.

Best of luck,

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Erin - You can have the homeowner approach the HOA directly, sometimes the personal, "human" touch helps. You can also explain to them that when the property closes, they will have a new "PAYING" owner and will be getting their dues regularly. Sometimes they  forget the big picture.

Generally we know this in advance of accepting an offer, and structure it so the buyer pays the difference, adjusting their offer accordingly. At this point working something out between the buyer and the hoa is probably your best bet.



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