HOA foreclosed the homeowner now the HOA is asking me to do a Short Sale

Hi,

 

This is a first for me...The HOA has foreclosed the homeowner and is now requesting me to do a short sale has any of you short sale experts out there had experience doing this and can offer any helpful tips on how to start the ball rolling..

I have closed 20 short sales in the last 6 months and this one I can see will be a challenge but I feel the banks would rather short sale than go the foreclosure route...

The concerns I have is we will be dealing directly with the HOA and not the homeowner..So things like banks statements, Tax returns, pay stubs e.t.c. will not be available..

 

Please help!

 

Best wishes,

Julian

Views: 113

Replies to This Discussion

Permalink Reply by Cami Pinsak on June 1, 2012 at 9:45am

Actually, the ex homeowner is still the borrower on the account.  The bank will want their information....

Permalink Reply by Jimena Paridee on June 1, 2012 at 10:04am

Actually it is just as a regular short sale when it comes to the lender, you will still need to submit financials from the seller, then lender doesn't really care who is on title.  I am doing one right now, the biggest problem is that the HOA's fees will keep increasing until you close so it is hard to get an accurate amount for the bank to pay as their demand is usually only good for 30 days so make sure you pad your HUD accordingly.  The other thing that we are having to deal with is the fact that we have to have two escrows, one for the HOA to deed the property back to the seller and one for the seller to the new buyer, you should check with your title company for what their procedure is going to be.  With our two escrows we have to pay transfer tax and escrow fees twice.  It's a pain in the you know what but it can be done.  Good Luck.

 

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