Foreclosure in 91367>Question Details

Phillipa Fer…, Home Buyer in Redondo Beach, CA

Help with HOA lien....Who owes the HOA?

Asked by Phillipa Fernando, Redondo Beach, CA Mon Jun 1, 2009

Hello Everyone,
I am currently in the process of purchasing a Short Sale condo, and as part of the counter offer I agreed to pay $3190 (HOA lien) at closing. Now with about 2 weeks left before closing, I find out that the lien payoff amont has been increased to $4143.

The counter offer that I signed states, "Buyer to carry Assement lien 'HOA Lien' in the amount of $3109.00. Buyer is aware that is an attempt at Short Sale where lender will determine final price, other terms and conditions including agents commisions. Property sold as is, seller will not provide any repairs, or reports. "

Since the current owners are still living in the unit, I don't think that it's fair that I pay more than I agreed to pay. I wanted to know who is responsible for the additional charges from the HOA?

Appreciate any advice...

Help the community by answering this question:


I agree that it worth trying to negotiate with the HOA. The fees and penalties have been accrued by the previous owner and it is in their interest to get a responsible owner and the account paid to date. They probably won't negotiate the dues but may help on the penalty and fees.
0 votes Thank Flag Link Tue Aug 17, 2010
It sounds like you need a strong negotiator. IF this is New news in the HUD, I would challenge them. If there are HOA dues owed, then the question for the HOA is this:
If you walk away, where does that get them?

I would negotiate. Look at the back up documentation. It's better for the HOA to get something rather than nothing. If you walk away, they get nothing (until they find a buyer). Why should you, the buyer, make up for someone else's mistakes. It you close escrow, they start collecting their dues right away. For every month the condo sits vacant, they lose.
0 votes Thank Flag Link Sun Jun 7, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
It all comes down to the number one question. Do you want this condo? If so, I'm sorry to say that you will be on the hook for this added amount. Banks are not paying the HOA liens left over by the former owners and the former owners certainly are not going to pay.

The counter offer states one pay off that conflicts with the final pay off demand. If you want out of the contract you can use that as a means to cancel and collect your deposit. I know it all appears to be very unfair that you would have to come in a mop up the former owner's left over mess. And many buyers can't just pull money out their hats like magicians do with bunnies.

It is up to you whether you feel it is worth the extra amount due or not. That much you have control over. Many times we find estimated pay off amounts to be different from the final demanded amount. In this market, personally, I would encourage you to just pay the freight and enjoy your condo. In my area here in the Socal San Bernardino County I have hands full of clients that would love to be in your shoes. To finally be that close to actually closing a purchase escrow is what they can hardly wait for. Count your blessings. Best of luck to you.....

Diane Wheatley, Broker
0 votes Thank Flag Link Sat Jun 6, 2009
If you want the house you will have to pay the outstanding lien. You agreed to pay the lien in the contract and for each additional month that goes by that lien increases. The owner does not have any money and you new that when you agreed to incur that cost. If you do not want to pay and find another property that would be fine, but if you feel your getting a good deal, you most likely will have to pay the lien. That is assuming all other parties are satisfied in the transaction.

Keith Manson
First Weber Group
Certified Distressed Property Expert
0 votes Thank Flag Link Sat Jun 6, 2009
If the Seller's don't have any money (which is likely the case in a short sale) they can't pay. If the bank won't pay, then the sale will not go through. The agent can ask the bank, and if they refuse then the only options to pay it are you and/or each agent. Sometimes it can be split 3 ways between the buyer and each agent. The agents are resonsible because they had you sign something that wasn't accurate.
0 votes Thank Flag Link Mon Jun 1, 2009
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