Replies to This Discussion

Permalink Reply by Stephen B. McWilliam on February 10, 2010 at 10:44am

Assuming Chase is servicing for Fannie or Freddie they typically will provide a maximum credit of $3K unless the association is entitled to more pursuant to state law in the event of a foreclosure.

Permalink Reply by Katerina Gasset on February 10, 2010 at 11:59am

It depends on the laws in your state that benefit HOAs. Here in Florida the lobby for HOA has made it a part of the Fl statute that if a bank forecloses here, they have to pay 6 months of HOA fees. So Chase will pay up to 6 months of HOA fees typically. But we go back to the same thing: all this hinges on who the note owner is NOT who the servicer is. Servicers have their own guidelines but at the end of the day it is the investor who decides on what fees he will pay or not. No short sale agent should ever even list a short sale without knowing who the note owner is. This is a huge part of the strategy.
Freddie and Fannie typically will pay up to what the statute demands but it will also have to do with what they are going to net. Private investors are tougher because they are accountable to their shareholders, you know, the folks like your mother and aunt, your brother and the teachers, firemen and police officers. They are accountable to those shareholders whereas fannie and freddie- well, their stock is predicted to go below 50 cents this year and it has not been above 2 dollars for years. So they don't really have anyone other than the taxpayers to be accountable to. And who cares about them,:)

Permalink Reply by Bryant Tutas on February 10, 2010 at 12:26pm

Pacita, The biggest issue I see in your post is taking a listing where the seller is not willing to contribute to make a deal work. HOA dues are a real pain in the rear when they are not current. Sellers need to be prepared to make them current. I always try to work them into the deal but I have to know the seller will pay if they have to or I usually pass on the listing. We can't perform miracles.

Permalink Reply by Pacita C Dimacali on February 10, 2010 at 1:10pm

Bryant -- you are right. They had not indicated their hesitation in paying for any fees because they were so focused on doing the short sale. Now that we have an offer, they are thinking that perhaps they wont have to pay....so I'm educating them on this aspect.

Permalink Reply by Bryant Tutas on February 10, 2010 at 1:24pm

Now you have one more item to add to your pre-listing disclosure statement :) By the way on my Chase closing last month they did agree to pay $1,200 in attorney fees for the seller. You just never know what they will pay. Add everything to the prelim HUD and see what flies.

Pacita C Dimacali said:

Bryant -- you are right. They had not indicated their hesitation in paying for any fees because they were so focused on doing the short sale. Now that we have an offer, they are thinking that perhaps they wont have to pay....so I'm educating them on this aspect.