Does the FHA cap past due condo dues? i have their sheet that says they pay them but the negotiator is saying they'll only pay $2500 which is part of the homeowner incentive. We are looking at $9000 in condo dues and when I look at the sheet of what they'll pay past due condo dues are on a completely separate line than a second lien for $2500 with the incentive, so I'm trying to get clarification.
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I have seen servicers act both ways. Some include it in the $2500 total, others do not.
It seems that in some instances an HOA may actually receive less if they file a lien. In Colorado, the first 6 months are "super-lien" status so that their negotiation break-even point and most will agree to a partial discount...
I know that $2500 is the max, but if you look at the "fees" sheet it lists second liens as $1500 (with seller incentive) as $2500 total, but then on a totally separate line item it says "condo dues" - I'm only assuming if the dues aren't an actual lien then they should cover the full amount, otherwise why would there be two line items.
I'm just thinking out loud.
It should work if the NET is high enough.
Ok, I think I have a definative answer. they will pay past dues, but not legal or late fees. My past dues are only in the $4200 range. If they pay that AND $2500 towards the past due amount, I can likely get the buyer to cover the rest. I just have to confirm for sure if we are meeting the minimum NET.
Thanks Bryant!!
HOA fees are an allowable expense to the seller. My guess is that if the NET is met it will be OK. But you may have to push hard. Getting $9,000 for HOA fees will be very difficult. Maybe have the buyer pay these.
$2,500 is the FHA max for all junior liens.