Home Buying in 60611>Question Details

Betty, Home Buyer in 60611

I am buying a condo in Chicago from Freddi Mac Homesteps. Am I responsible for all of the HOA's accrued assessments? Are there limits?

Asked by Betty, 60611 Sat Mar 12, 2011

The contract addendum reads "seller(Freddi Mac) shall not be responsible for any homeowener's association assessments that accrued prior to the date seller acquired the property. If the association put a lien on the property, does Freddi Mac have to clear it before it can sell to me?

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5
Betty, you'll also want to have your attorney check with the Association to find out if they filed a motion to be able to collect on past due assessment from the new buyer. This is the only loop hole that I know of that could possible negate you from being responsible for the past due HOA fee's.

Cecelia Marlow
Chicago Bancorp
Mortgage Banker
312-738-6294 direct
cmarlow@chicagobancorp.com
2 votes Thank Flag Link Sat Mar 12, 2011
This is true.
Flag Tue Apr 8, 2014
Betty,

Yes, you could be responsible for any missed assessments. Before you put in an offer, your agent needs to call the buildings management company, ask to speak with the property manager for this particular property, and find out if any of the taxes and assessments are passed due. You want to make sure the taxes are up to date, and they should also be able to tell you if there are any missed assessments and if so, how much you'll have to pay. There will probably be some late fees that apply as well, so ask for those too.

Marcin
Marcin@conlonrealestate.com
2 votes Thank Flag Link Sat Mar 12, 2011
This is such an important question that all Chicago foreclosure buyers should be aware of. The short answer is "yes", but up to 6 months worth of assessments, fees and reasonable legal costs. The long answer is "not always" depending upon a whole assortment of reasons -- one being the skill of your attorney and agent, and whether or not you are owner occupying or an investor.

Unfortunately the PAL (paid assessment letter) usually comes out late in the attorney review process, in a competitive bidding, multi-offer situation buyers often have to assume the worst when they make their offer. At least that way you could be pleasantly surprised!

Hope this helps,

Michael
Web Reference: http://www.ChicagoREA.com
1 vote Thank Flag Link Wed Feb 22, 2012
I think you are only responsible for 6 months before it went foreclose. Be careful. Make sure you have all the condo documents are there, read them carefully, 22.1, minutes, if there is special assessments. My condo from Freddie mac passed 15K special assessment bill after closing. I have to solve it out. Not sure how. Be careful with REO properties
0 votes Thank Flag Link Thu Apr 12, 2012
Freddie Mac will clear everything for you to ensure that you get clean title. Just make sure your attorney takes care of all of this. Your other source of "insurance" that you won't be responsible for other assessments is when you get a paid assessment letter from the HOA. Discuss with your lawyer to make sure that it specified asssessments are up to date prior to closing.

As always discuss with your real estate agent. What has he/she advised?
0 votes Thank Flag Link Sat Apr 7, 2012
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