Home Buying in 10017>Question Details

Denise, Home Buyer in 10036

Am I making a wise short sale purchase, given the fact that I'll have to cover the seller's $30K HOA debt?

Asked by Denise, 10036 Sun Nov 13, 2011

I am interested in purchasing short sale condo. The condo is worth approximately between $420K - $435K based on the comps. My offer has been accepted by the seller at $350K, but I was just informed that I'd have to cover the seller's HOA debt, which amounts to $30K. I hoping this amount will be negotiated down, but it’s unlikely that the seller's bank probably cover the amount. In addition, since I can't add this to my mortgage I'd might have to obtain a line of credit to cover this expense. Is this a wise home purchase?

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Based on my offer I'd be getting the property $70K - $80K below market value. I'm aware the bank could counter my offer, but I'm unwilling to go any higher due to the huge HOA bill.
0 votes Thank Flag Link Sun Nov 13, 2011
Thanks Ron. We're definitely on the same page. I'm waiting for the seller's attorney to provide me with an itemize bill. I'm no math wiz , but the monthly HOA fee is $550 and something else has to be included in this amount.
0 votes Thank Flag Link Sun Nov 13, 2011
Whoa - that's a hefty HOA debt. I hope you'll be getting the property at least $30,000 under market.
Web Reference: http://tampahouse1.com
0 votes Thank Flag Link Sun Nov 13, 2011
I wouldn't think so,
but this is on you.

To me, it is a red flag that it amounts to $30,000!!!
How many months were they behind?
How much is the monthly fee?
If they were 12 months behind; then the monthly fee must be more than $1000,
and Vig would still be over 50%!!!

Caviat Emptor!!
0 votes Thank Flag Link Sun Nov 13, 2011
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