I have been contacted by an owner of a condo to list the unit as a short sale.  The seller has 2 loans - both with BoA.  The unit is worth approx 30k.

The biggest issue I see is that the seller vacated the unit in December of 2009 and has not paid any of the HOA fees which are currently running $350.00 per month.

I LOVE helping distressed homeowners but my instinct tells me this one will not go thru due to the excessive back HOA fees.

So my question to you is would you / should I take this short sale listing?  I want to help but yet at the same time don't want to waste my time fighting a losing battle.

Your thoughts and input will be greatly appreciated!!!

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I have taken these on before and if you do just realize that it is pro bono work because even if it gets approved and you have both sides you will lose money by doing it.  It can be done, I got $18000 paid in past HOA fees on a $140000 sale before with BofA.  What are the laws in your state regarding HOA fees and how much the bank has to pay if they foreclose?

In Florida the banks aren't required to pay hardly anything towards back HOA fees which is why I am concerned it won't go thru. 

Terry in FLorida they have to pay condo associations back 12 months from date of clerks deed being filed.

Jeff,  I have been told 12 months or 1% of the loan amount whichever is less???  Do you know if this is in fact the truth?   I rarely run into this problem as most of my condo short sellers are told up front that they need to continue paying the HOA fees even if not paying the mortgage so the short sale will go thru much easier and they cooperate.  Since this seller abandoned the unit in December of 2009 and HOA fees are $350.00 a month and he hasn't paid any HOA fees since then we are dealing with a very large hit on a property that is only worth 30k.

That is true, how much is the amount of the mortgage that you are dealing with?  The amount you are dealing with would be about $12,000 in past dues so that would be a large mortgage :)   It is not unrealistic to say that BOfA would pay this or at least a large portion of it and you could either get the HOA to negotiate or have the buyer pay ot.

The mortgage balances combined come to approx 100k

OK, the HOA would then get $1000.00 if the bank foreclosed so go to them and tell them that you are going to ask for ALL of it but expect the bank to only allow 1% of the balance. Ask the bank for all of the HOA balance and get the HOA as much as you can. It is possible if you want to try it,  just keep in mind that you will be basically doing it for free... maybe you can get some referrals out of it :)

Thanks so much for all your help Jeff!  Greatly appreciated!!!

In Florida, per state Statue 718.116 the HOA is required to release their lien upon receipt of the lesser of 12 months past HOA fees, OR 1% of the original loan amount in a foreclosure action.

IF it is a foreclosure, they dont have to with a short sale

Hi Terry. I just had BofA pay $12,000 in HOA on a 60k sale. They will pay as Florida is a super lien State. Just order an estoppel before you submit the numbers to BofA to make sure they are right. See if the as0sciation will negotiate some.

I would also have the buyer pay their agent so you can keep the 6%.

Thanks Bryant!  How does it work in your area on estoppel's?  Here they make us pay for them and usually charge around $250.00 - the seller is flat broke and can't pay for the estoppel and I have no plans of paying for it either with the commission amount being so low and of course no guarantee of acceptance from BoA.  He abandoned the property over three and a half years ago and BoA is aware of that so I am also operating on the belief that BoA will not pay the 6%

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