HOA dues paid at closing with seller credit?

What has been your experience with asking for a seller credit for C.C then have the buyer pay late HOA dues with them?  I have one that's almost 4k behind on HOA. It hasn't been sent to a collection dept yet so I can prob. get the late dues etc waived but still buyers want to ask for the credit- I have done one like this a few years ago but it was a private investor, what is fannie and freddies take on this?


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Permalink Reply by Bryant Tutas on April 18, 2012 at 11:51pm

I would think that as long as the seller credit is 3% or less it shouldn't be an issue. Why not just ask the lender to pay the HOA as a seller debit? I've had as much as $25,000 in HOA fees without much of a battle..

Permalink Reply by Barbara Lebrecht on April 19, 2012 at 4:13am

I have done this sucessfully a few times.  The key is coordinating with your loan officer to see how it will look on the HUD...many lenders (especially with FHA financing) are very particular with what they consider allowable for the buyer to pay.  Sometimes a seperate addendum is required for the lender only.  Good luck on negotiating the lien!

Permalink Reply by Carol Muir on April 19, 2012 at 7:38am

 

Yes, I have done a few also where the Seller used HAFA + other incentive credit to pay part of HOA on the HUD-1. You have to put it on the HUD-1 and see if the Bank will allow as the others have suggested.

 

Another alternataive is to have the Seller pay the HOA the agreed amount directly if Bank does not allow. So this would be a POC transaction.

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