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Alex Aunon, Real Estate Pro in Tucson, AZ

who is liable? Scenario: Short Sale with bank approval letter in hand, funds in escrow ready to close. An HOA lien of 6k shows up on condo certs.No go

Asked by Alex Aunon, Tucson, AZ Wed Sep 22, 2010

Listing agent for not updating? Escrow company for not spending money on a condo certs until some form of funds? seller for not metioning all the ignored calls from lawyers attempting to collect? Buyers agent for not interviewing listing agents expereince?

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7
This is what Title is for and why in Arizona Title is involved, for anyone else in this situation the lien could be negotiated for pay off.
0 votes Thank Flag Link Sun Apr 8, 2012
The original question was asked back on Sep 22, 2010.

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0 votes Thank Flag Link Sun Apr 1, 2012
If you are looking for someone to blame, the "Wild, Wild, West of Real Estate" also known as short sales may not be for you.

But to answer your question...it all starts where the first betrayal occurred... with the bank.
0 votes Thank Flag Link Sun Apr 1, 2012
Just negotiate the hoa lien for a short payoff. We recently settled a $29,000 hoa lien for $1,500.. The listing agent just needs to get on it.
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0 votes Thank Flag Link Sun Apr 1, 2012
In every short sale I have a standard form that requires the owner to outline in writing any past due fees, dues or liens with their signature on the form. It gives me an opportunity to discuss this with them in person and I've only have one case where a person gave me bad information.

Based on your experience I will be adding "contact HOA/Condo Association to verify payment status" to my pre-listing checklist and make it a monthly recurring task. Thanks for the heads up.
0 votes Thank Flag Link Wed Sep 22, 2010
This is one of those situations where fault would be hard to place on one particular person. Everyone shares some responsibility. Has the listing agent or the seller asked the HOA if they would release the lien. Sometimes HOA's are willing to release a lien, but not the obligation for the seller to pay. The advantage to the HOA is that the new owners would pay their monthly HOA payment, there by increasing their funds, and they can still pursue the seller for the 6K. The next option is to ask if they will settle for less, that is if the seller has any money to contribute. If the buyer still wants the property, I think everyone's energy would be better utilized in finding a solution, then looking for a liable party. Good luck.
0 votes Thank Flag Link Wed Sep 22, 2010
I would have to say it is both the seller and title company. The listing agent is only privy to the chain of title and what the seller has disclosed. Your buyer obviously can withdraw their offer given the current developments. Unfortunately, I have seen more and more HOA liens that have affected purchases and/or refinances as HOAs are being more aggressive in collecting late dues.

Sorry to hear about your situation. I only hope the seller can pay the HOA lien with the proceeds of the sale.
0 votes Thank Flag Link Wed Sep 22, 2010
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