Am I STUPID?? Bank negotiator says buy at Foreclosure Sale??
I have been negotiating a short sale on a Florida condo (the lender Kondaur called ME to handle this sale in the first place) - and the negotiator has been pretty wonderful through the whole process - UNTIL..... we got down to the second lien holder who won't play ball - even though the foreclosure sale is coming up next week. The negotiator who is handling everything at Kondaur has advised that the buyer should go down to the court and just purchase at our agreed price in the contract. We have been informed what has and has not been paid and what fees will be covered by the first lien holder & what the buyers will have to pay....
Now of course, from the title search we know there are HOA fees due (I am told the MAX they can get is 6 months worth? is that true??) and there may also an outstanding assessment for $3000. The buyer wants to lower their offer by that amount and is then willing to buy at the sale.
Now here's the trick - We have an email from Kondaur that they are willing to pay commissions - but not anything signed by them..... Now I'm just wondering if they will try to subtract out what the buyer doesn't pay from the realtors??... or if there is any guarantee they will pay us at all.... The other agent and I are kinda' thinking it would be a whole lot easier if we take a risk that no one else will buy it at the sale (I would say it would be a remote chance - but the price they want doesn't make this condo a super deal so we doubt it) If we take the risk & no one else buys it - the bank will get it back and we can resume negotiations with them and our buyer.... I just don't know how to advise every one - I don't really want to be in a "come to find out" position! I don't want to be stupid. Any advice? ( I know this isn't BOA - but you guys know your stuff!!)
Replies to This Discussion
-
Permalink Reply by Jeff Payne on
-
You are correct, once it forecloses, the bank only has to pay the HOA back 6 months on a condo from the date of clerks deed. The bank will have a representative at the court house to make sure they protect themselves. As far as buying at at the courthouse, your buyer must have cash and be ready to hand it over. When the bank takes it back, you will have to wait for it to come back on the market in most cases.
At the courthouse, your buyer will be responsible for paying the commission if you expect to get paid -
-
Permalink Reply by Karen Donovan on
-
Hi Jeff,
Thanks for reply. That's the thing - the bank said they WILL STILL PAY US! and on HOA fees we are stlll getting conflicting advice from ATTORNIES in Florida! -
-
-
Hi Karen,
I am 100% positive that HOA can only collect 6 months prior to the date the clerks deed is recorded plus attorney fees on a condo in Florida. Been down that road many, many times with REO listings. 6 months prior and everything forward from the date the clerks deed is recorded on a condo, 1 year on a house.
As far as the bank paying you, make them sign a commission agreement BEFORE you do anything else
Karen Donovan said:Hi Jeff,
Thanks for reply. That's the thing - the bank said they WILL STILL PAY US! and on HOA fees we are stlll getting conflicting advice from ATTORNIES in Florida! -
-
-
Thanks for info. Yes I will do that!
-
-
Permalink Reply by Thomas McCombs on
-
Kondaur is not a lender. They have obtained control over this note by either buying it or taking some kind of assignment.
So Kondaur's cost is probably much lower than the face amount of the note, and they can afford to take a big hit off the face and still come out with a nice profit.
So they could care less about the 2nd mtge or any subordinate liens. That is why you were advised to just buy it at the Sheriff's sale. They can afford to pay your commission because at the sale they will bid up high enough to cover all those kinds of expenses before they let you win the bid. So in effect, your buyer will be paying your commission. -
-
-
Thomas, thanks - that makes sense!
Thomas McCombs said:Kondaur is not a lender. They have obtained control over this note by either buying it or taking some kind of assignment.
So Kondaur's cost is probably much lower than the face amount of the note, and they can afford to take a big hit off the face and still come out with a nice profit.
So they could care less about the 2nd mtge or any subordinate liens. That is why you were advised to just buy it at the Sheriff's sale. They can afford to pay your commission because at the sale they will bid up high enough to cover all those kinds of expenses before they let you win the bid. So in effect, your buyer will be paying your commission. -
-
-
Hey Jeff - what do you make of this response from attorney in Ft. Lauderdale - who I guess is doing the sale over here in Pinellas County????
Good afternoon,
Unfortunately, the law has changed regarding homeowner association dues. Before the recession most associations did not try to collect more than 12 months maintenance or 1% of the original mortgage balance from mortgage investors who acquired title by an assignment of judgment or bid from the foreclosing lender. Now, many associations are struggling financially and they are becoming more aggressive in the collection of past due assessments.
The associations' aggressive position is supported by the courts, at least in part of the state. The Third District Court of Appeal, which includes Miami-Dade County (Miami, Miami Beach, Hialeah and other cities) and Monroe County (the Florida Keys) has specifically held that "this safe harbor [applies] only to first mortgagees or a 'subsequent holder of the first mortgage..." Appeals courts in other parts of the state and the Florida Supreme Court have not ruled on the issue.
This statute and the Third District Court of Appeal’s ruling present a significant financial risk to any REO owner who receives a Certificate of Title from the foreclosing mortgagee. – The REO owner may be responsible to pay the entire amount owed for past due condominium maintenance fees.
Thank you,
Jeff Payne said:You are correct, once it forecloses, the bank only has to pay the HOA back 6 months on a condo from the date of clerks deed. The bank will have a representative at the court house to make sure they protect themselves. As far as buying at at the courthouse, your buyer must have cash and be ready to hand it over. When the bank takes it back, you will have to wait for it to come back on the market in most cases.
At the courthouse, your buyer will be responsible for paying the commission if you expect to get paid -
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons