Replies to This Discussion

Permalink Reply by Becky Martin on October 12, 2011 at 3:08am

Negotiate with the HOA association for a settlement, it is to their advantage to have a paying homeowner in the property.  If you can negotiate with them for a lower settlement then ask all parties involved in the transaction to contribute so you can close.

Permalink Reply by Vickie Nagy on October 12, 2011 at 3:09am

Unfortunately this is a very common problem with HOA delinquencies. Someone needs to pay the HOA in order to sell. I've done 4-way splits with agent contributions incorporated to make one close before. Just has to be on the HUD and approved by all parties.

Kindest Regards,

Vickie Nagy, CA DRE#01363932, BMC Real Estate

Permalink Reply by Debby Thompson on October 12, 2011 at 3:27am

I got an approval from Chase and they pick all kinds of things they would not pay on the Pre HUD. We agreed on what would be paid then I got the approval back with an additional $6,000 added to the final number we agreed upon. I have tried to get her back on the phone and she will not call me back to explain this approval letter. We are supose to close on Oct 28th. Can't see that happening at this time.

Permalink Reply by Estella Drake, CDPE on October 12, 2011 at 4:49am

If the HOA is now with a collection agency I suggest you contact them directly for a settlement, they are no different then a credit card debt settlement once the HOA charges it off to a 3rd party, the HOA is harder to negotiate when it is in their hands. Can the buyer and seller match the 1200? Try the bank amount and don't tell them buyer or seller amounts to see if they will take the bank offer first..Think collection agency negotiate tactics.

Permalink Reply by Duretta Lorang on October 12, 2011 at 2:55pm

The problem here is that each attorney company gets direction from the Association it represents.  They are limited by what guidelines the Association Board of Directors give the GM of the Association, who in turn, gives that information to the Attorney.  Investigate from the Association.

Permalink Reply by Duretta Lorang on October 12, 2011 at 4:53am

Is this a HAFA short sale?  Most will not allow this to be paid by borrower or agent in escrow.  Must be paid in full first, lien cleared and then close.  If not, then good suggestions below regarding negotiating.

 

Permalink Reply by Luis Cardozo on October 12, 2011 at 5:05am

HOA tends to add lots of late fees, legal fees and so forth. Find out the actual HOA dues owed. Use this number to negotiate with HOA. Then ask the agents, sellers and buyers to split the cost. Good luck. 

Permalink Reply by Duretta Lorang on October 12, 2011 at 2:52pm

Nope,sorry to refute, but HAFA short sales will not.  Even Traditional short sales are independent and offer different solutions.  Part of the problem is that the ASsociation attorneys are directed by the Association board of directors and their policies dictate what the attornies can accept.  It is a definate learning curve for each situation.  No rules apply evenly.  We must educate ourselves each step of the way.  No excuses.

Permalink Reply by Suzanne Kensington on October 12, 2011 at 5:39am

I just went through something similar with Chase.  Their investor would only approve 6 months of past due HOA fees.  This HOA was approximately $450 per month and the HOA had a judgment for $14,000 - Chase would pay $3300.  The buyer agreed to pay $5000 towards the HOA and then we finally got the HOA to accept the $3300 + $5000 as a settlement offer, but it wasn't easy.  The HOA really made out well, because in this particular scenario if Chase foreclosed they would receive nothing. It wasn't a case where they could collect from the new buyer.

Permalink Reply by Mary Ann Carman on October 12, 2011 at 8:04am

Here in Tucson, AZ when the bank takes over a property the HOA fees are lost.

Bank will only pay from when they had the house I suppose the HOA can sue

the past owner, but probably wouldn't get much.

Permalink Reply by Duretta Lorang on October 12, 2011 at 2:47pm

Please know that each Association has it's own rules regarding what they will negotiate. Ours will only take 20% off, period.  And they have no clue about Hafa requirements.  I have just called our GM and updated her on HAFA.  She in turn is informing The attorney in charge of inforcing liens, etc.  Our main escrow company did not know about the fact that the borrower/seller cannot give up any portion of their $3000 nor can the agent give up any portion of the commission.  So many sales fail due to our lack of knowledge and counseling in the beginning.  I feel as if I am learning a whole new trade and each short sale I do is unique and like no other.  No training prepares us for all that we need to know and so we fail our sellers/buyers.  It is the most difficult market I have ever been in.