Tags:
Unfortunately, this has become VERY common in Southern CA. If the HOA is not settled at closing, it will carry forward to the property and it will be your responsibility along with ongoing penalties and possible legal fees.
It sounds like you're doing FHA loan. I doubt your loan will close without this being settled at closing. The lender may pull your funding.
As others have said, tell your Agent to "get it resolved".
Best of luck,
Thom Colby
Broker
Newport Beach CA
For future reference, I'm wondering if the HOA fees can be negotiated down from the full amount? Has anyone had any experience doing this? And, what are the chances that the HOA will accept a reduced settlement rather than spending the effort to recover the full amount from the seller in the future or, even asking the buyer to step in?
Richard, you are correct, Arizona is much like FLorida. I have some really good friends who are agents in AZ who do hundreds of short sales, before long you are going to need to get your license :)
On a side note, I have been successful in getting the banks to pay all of the past HOA fees, BofA recently agreed to pay 18K recently for past HOA fees on a condo
Hi Jeff,
You guys have a vast wealth of knowledge in this field. A lot more than I can digest at this time. I've decided I'm going to let you real pros take care of this national crisis. There's no need for me to muddy the waters. The country is in bad enough shape already :)
But it's interesting that you mentioned getting my license. Just by chance I was discussing real estate with a brother last night at my mom's birthday gathering. He informed me that my sister and neice had decided recently and had already started turning over homes in the Phoenix southeast metro area. So, interesting enough the main conversation aside from my mom's birthday was real estate.
When I think about it, its funny that I have a sister and neice with some money burning holes in their pockets and willing to do some tough work, yet another real estate agent brother who cringes at the sound of the word "short sale". I guess some people are not cut out for it.
Hi Richard.
Some HOAs will cooperate in negotiating. However, it takes dedication on the part of the Listing Agent or assigned Short Sale negotiator.
The HOA is usually really mad at the Seller. So, getting the Seller to call and discuss with the HOA counsel is probably not a good idea.
I recently went to an HOA "Monthly Community Meeting" and had all of the HOA electives to speak with.
It worked out great. Their attorney called me the next morning and offered $4200 in place of the $11,300 owed.
Research the Statutes and know how much the HOA will be paid if the home forecloses. This is great leverage.
Also, if the HOA has already obtained "Certificate of Title"..... walk away.
Some HOAs will foreclose and obtain Certificate of Title to rent out the home and recover losses.
This is a losing battle 99% of the time. So, walk away from such a circumstance.
Also, do all of this negotiating BEFORE negotiating the Short Sale with the lender.
Place your negotiated amount on the submitted preliminary HUD Statement, and hold strong during your negotiations with the lender.
Happy negotiating :)
Definitely negotiate w/ the HOA. I have used several tactics to get them taken care of. Once the HOA has agreed on an amount, put it on the HUD for the lender to pay. I have also had the HOA agree to a soft note which the seller signed at closing. After closing I went back in and offered the HOA cash to settle the soft note. In the end, we probably only paid about 1/4 of what was truly owed to the HOA.
To make your negitiations stronger, check to see what will happend to the HOA if the house is foreclosed on. They may not received a nickle in that situation.
Good Luck!
© 2024 Created by Short Sale Superstars LLC. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.