Would You / Should I Take This Short Sale Listing???

I have been contacted by an owner of a condo to list the unit as a short sale.  The seller has 2 loans - both with BoA.  The unit is worth approx 30k.

The biggest issue I see is that the seller vacated the unit in December of 2009 and has not paid any of the HOA fees which are currently running $350.00 per month.

I LOVE helping distressed homeowners but my instinct tells me this one will not go thru due to the excessive back HOA fees.

So my question to you is would you / should I take this short sale listing?  I want to help but yet at the same time don't want to waste my time fighting a losing battle.

Your thoughts and input will be greatly appreciated!!!

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Permalink Reply by Bryant Tutas on July 21, 2012 at 12:45am

My title company pays for them up front and then we charge the buyer at closing

Permalink Reply by Terry McCarley on July 21, 2012 at 3:54am

Awesome way to handle it Bryant! 

Permalink Reply by Janis Schade on July 19, 2012 at 9:06am

I'm also working on a BOA short sale, condo, $30,000 value, outstanding HOA's.  I'm using the Streamline plan, and I would like to say, not too streamlined.  I have an offer in at $32,000.  So, even at 6% commissions, I could possible clear $450....I'm not sure if I would have taken this one knowing that the Streamline sends me straight back to Equator.  There is a promise of additional funds at closing, but you have to get there.  I've bogged down my office with paperwork for a $900 commission more of less.  I don't think it's a very good business plan. 

Before you take the listing, make sure that you can sell FHA (many can not).  Find out how many can be rentals in the bylaws.  A lot of the companies are paying HOA's, but not having much luck with BOA.

Permalink Reply by Terry McCarley on July 20, 2012 at 5:46am

Thanks Janis - I know I won't make hardly anything even if I successfully get the short sale approved.  I understand your thoughts on this which is why I am debating taking the listen - if it weren't for the fact that I love helping people I would have just flat out turned it down.

Permalink Reply by Carmine R Biello Jr on July 20, 2012 at 11:14am

YES! Absolutely. The alternative is foreclosure. Safe Harbor laws apply with respect to the HOA. In FL it is 12 months plus reasonable attorney fees.

Best of Luck!

 

Carmine R Biello Jr.

Permalink Reply by Kimberley Kelly on July 21, 2012 at 1:44am

As Jeff says..this is pro bono work and I personally don't have time to do it.  Good luck!  I'd pass unless you have a personal attachment to the unit/owners???

Permalink Reply by Terry McCarley on July 21, 2012 at 3:53am

Thanks Kimberly - it is pro bono work for sure and I do not have any personal attachment to either the unit or the owners - I just have a great desire to help people whenever I can but this one is a tough one.

Permalink Reply by Wendy Rulnick on July 21, 2012 at 4:40am

I would do it to help someone out.  I bet the HOA will negotiate.

Permalink Reply by Terry McCarley on July 22, 2012 at 3:35am

Thanks Wendy - I'm going to give it a shot.  All I need now is keys to the unit.  The bank told him to list it as a short sale and as things turned out the bank rekeyed the unit awhile back.  They have promised to give us access to the unit so that is what I am waiting on now.

Permalink Reply by Jerri Schick on July 22, 2012 at 3:06am

I have been successful several times in getting the HOA to accept a contribution from the lien holder (just as if the HOA were a junior lien holder) and the HOA took it because they knew if it went to foreclosure they would get nothing.  Sometimes the HOA has to go to the board to get the amount approved but so far it has worked everytime.

Permalink Reply by Terry McCarley on July 22, 2012 at 3:36am

Hi Jerri - I agree totally - it is in the best interest of the assc to negotiate - now if I can only get them to return my phone calls.  I'm going to give it a couple more trys and then will probably have to visit their office in person.

Permalink Reply by Sylvia Barry on July 22, 2012 at 4:07am

I have also sold a condo via short sale and BofA paid the HOA fees.  That's one way of doing it, but could be risky as you never know whether the lender will pay the back HOA rellated fees (meaning fees, penalties and collection fees).

They other way of doing it is to disclose that on MLS and say the buyer will have to be responsible for that.  In this case, the same buyer was willing to pay the HOA fees if the lender did not approve, but the lender did so the buyer did not have to also pay for that.


But make sure it's a condo at a price where a buyer will be willing to do that.

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