I didn't even know HAFA still existed, but apparently it does.
I am working on a SS with SPS.
I was told that because North Carolina is not a Super lien state that the HOA lien will not be paid in foreclosure, so they are not going to pay it as part of the short sale.
Because it is not a mortgage lien, the processor said that I can pay it or the Buyer can pay it. But they will not pay it.
Before I give up my cash to make this 8 month deal go thru... is this true? Or am I missing something?
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You won't get it paid unless you are in a superlien state. HAFA has guidelines that homeowners must pay their dues and keep current. We just subtract it from the buyer's offer price and have the buyer bring it to closing and adjust the PNS before it goes to the servicer.
I'd be escalating with the ombudsman office. I'd still be pushing to have the bank pay 1 year of past due HOA dues while negotiating with the HOA lien. To my understanding they likely won't pay the HOA lien off in full while the file is going through HAFA due to HAFA guidelines, but if you request that some funds go to the HOA deliquency this may be allowed. Typically they only want to review a max of one year of HOA past dues. I'm in California which to my understanding is not a super lien state and we have seen funds allowed to HOA on numerous occasions.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com