Foreclosure in Fort Myers>Question Details

Nogimmey, Home Buyer in Fort Myers, FL

In a foreclosure closing are (seller) banks required to cover all HOA dues that were due even before they were acquired the by the bank.

Asked by Nogimmey, Fort Myers, FL Fri May 18, 2012

I have a bid for a property that has overdue HOA fees that were not paid before that bank took over the condo. In the contract the bank wants me to sign an addendum that they would only pay the amount that was not paid after they took over the condo.
I was told that does not apply in Florida is that true?
Or will I be responsible for the earlier HOA fees?

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Answers

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IN EVERY FORECLOSURE I HAVE DEALT WITH (LOTS), THE BANK HAS THE OBLIGATION TO PROVIDE CLEAR TITLE. THAT INCLUDES BRINGING ALL FEES UP-TO-DATE AT CLOSING. THEY COULD ASK YOU TO PAY SOME, BUT THAT BASICALLY MEANS THEY ARE INCREASING THE PRICE YOU HAVE TO PAY FOR THE CONDO.
I RECOMMEND YOU SAY "NO" OR NEGOTIATE WITH THEM FURTHER.
1 vote Thank Flag Link Fri May 18, 2012
The banks can attempt to get you to pay anything. Real estate agents are not allowed to give you legal advice so your question needs to be directed to a real estate attorney.
1 vote Thank Flag Link Fri May 18, 2012
Hello,
Be careful of bank addendums like that. You will want to know exactly what is owed and what they intend to pay prior to putting your self out there. Every situation I have been in regarding condo fees the bank has paid all of it. I had a situation where the bank's attorney and the HOA atty went back and forth for 5-6 months in and out of court and the bank ended up losing and had to pay $35000.00 in 3 years past HOA dues, late fees, attorneys fees, assessments and interest. This was on a $55K foreclosure sale here in Ft. Myers. Hope that helps you.

Sarah Garrett, Realtor
ALLIANCE REALTY GROUP
"Chosen Best in Client Satisfaction 2006-2011" by Gulfshore Life Magazine
Cell: 239-464-8620
Email: sarahgarrett@argfl.com
Web Access to MLS:
1 vote Thank Flag Link Fri May 18, 2012
I'd highly recommend using a Real Estate attorney to make sure you are protected. We use Sharon Zuccaro with Henderson Franklin. 239-344-1100 - Sharon.Zuccaro@henlaw.com
0 votes Thank Flag Link Fri May 25, 2012
If you are getting a mortgage your lender will protect your interests and not allow you to close without title insurance that would ensure all liens are satisfied (including HOA & Condo) BEFORE you close.

If you are paying ALL CASH and this is a bank owned it would be very odd for the bank NOT to satisfy all liens. Go hire an attorney asap to review your contract and the Title Insurance Committment letter to make sure you will not get stuck with hefty fees after closing.

Are you sure this is not a Pre-foreclosure, short sale? In a short sale I have seen buyers get stuck with HOA & Condo fees that are past due.

Hope this helps.

All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Sun May 20, 2012
I'm getting all sorts of differing opinions about about who is responsible for past HOA fees on this FORECLOSURE. What I'm looking for is verification that I received from the listing agent, is that according to him "Florida law states that all HOA fees are to be paid for by the bank before closing". Either through negotiation with the Association or outright payment of past due fees.
Flag Mon May 21, 2012
In a foreclosure, the bank will only pay up to six months of prior unpaid HOA fees.
You can, prior to a closing, negotiate with the HOA. They must issue an Estoppel letter to the Title company handling the closing.
Have you Realtor follow up with the HPA.

Regards,
Ed Humbert, GRI,MBA,PMS,SRES
Advanta Realty, LLC
239-464-9855
http://ehumbert@advantarealty.com
0 votes Thank Flag Link Fri May 18, 2012
Sounds to me like an item you need to negotiate away!
Web Reference: http://www.gulfreturns.com/
0 votes Thank Flag Link Fri May 18, 2012
You guys must have an odd foreclosure process in Florida if HOA dues survive a sheriff’s sale. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri May 18, 2012
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