I have a prospective listing appointment scheduled for an FHA Short Sale with an HOA Lien. This will be my first short sale that has an HOA lien. The lien is now over $6000. Will BofA pay off an HOA lien, or partially pay of an HOA lien?
Thank you!
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Hi Kelly, Yes, the PFS program costs allow for HOA lien payoff. Here is a link to the FHA Allowable and DIsallowable costs: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14627.pdf
I recommend factoring that into the net to seller though. In other words, the net to FHA needs to be 88% of the appraised value, so the HOA payoff will have to be factored into that along with commission and other closing costs, unless you ask for a variance. Good Luck! :)
Hi Tara,
Thank you! Very helpful!
Kelly
I just closed one short sale with BofA and BofA paid off a pretty substantial HOA lien.
I believed you stated that you have an FHA short sale and FHA only allows a max of 2500 to any second thereby taking the seller's incentive of 1K away for anything over the 1500 mark which the seller incentive of 1K would make up the 2500 allowable max to any second unless it's a partical claim as they must be paid off in full.
Jim
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