I'm a buyer on a US Bank short sale property. First offer was rejected, getting prepared to make another one. The seller is $40,000 delinquent to the HOA. As part of the bargaining process, do banks generally prefer the buyer to assume the liability for the HOA. For example, given two offers of the same amount, 1 lower sale price but buyer assuming the HOA portion vs. higher sale price with seller assuming. Thanks!
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Assuming the liability to the HOA would be a huge benefit to your offer. $40,000 will be very difficult for the lender to agree to pay. However, delinquent HOA fees do not affect the value of the property. the property value is the same no matter how many or much the liens are for. This is going to be difficult short sale.
Exactly Bryant. Probably 25k of the 40k is attorney fees, and they are tough to negotiate with. But, in Florida if it goes to foreclosure, the HOA only gets 1% of mortgage amount, or 12 months dues, whichever is less. That's your biggest bargaining chip. I would not expect to have to pay the full amount. Your offer should consider the value of the house only, with seller/lender paying the HOA. But be prepared for having to kick in a little extra, so price your offer accordingly.