Now to your question. Because this is a short sale, you will need to negotiate with the HOA for a lesser number so they will release their lein. Most will waive late fees and only ask for the actual dues. Their motivation is they get a paying owner sooner, but if it goes to foreclosure, the bank will start paying HOA dues so offering to pay them zero is not an option. You are not in a good negotiating position. If the seller simply does not have any money to contribute, then you are stuck with asking the buyer to pay some or all the HOA bills, or use part of your commission. I doubt seriously whether B of A will contribute based on what I here from other agents.
Call the HOA and see what you can work out. Talk to the buyer's agent to see if they are willing to contribute.
I am facing the same problem with a short sale seller. I convinced the seller that he had been getting free rent for some time and now needed to dig in his pocket to make this go away.
If the seller has absolutely no money, then he may be better off to let it go to foreclosure and file bankruptcy to discharge the HOA debt. Try discussing it with them that way.
This site has a sub-blog devoted to Bank of America short sales problems and solutions.
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I have found it quite informative.
Ready Real Estate
I worked with my realtor and the HOA and first got the amount reduced. Settled and got it in writing.
My partner, buyer realtor agent, and the listing agent all put our heads together and worked through it.
Having a good lender on board that proactively helps might be the key.
Please see my blog with an outline of how a short sale works and tips and advice on how to get it approved
This is a secured lien and will be on the hud 1. If the bank bulks then maybe a settlement can be worked out with the hoa. Remember if they do not agree to something a foreclosure will wipe them out if the mortgage is a 1st. They then would get 0. Hope this helps.