I've made an additional payment. The HOA agency, however, hasn't cashed any of the checks yet as they are going after the seller for unpaid dues. They are claiming that they don't want me on their records as the current owner yet (although legally I am). All taxes/liens, etc where cleared upon escrow. I'm about to pay another month's dues but the HOA agency rep has been vague about when my checks will actually be cashed. Am I wrong to be suspicious here? I don't want the HOA agency to claim I haven't been paying my dues and go after me. Could they do this? Is this standard practice?
Hi T,
We're a little confused by your conflicting statements: "all taxes/liens were cleared upon escrow" doesn't match up with "going after the seller for unpaid dues". In a short sale there is an agreement of what will be paid and what won't be paid. Short sales banks are being more difficult about paying past due HOA dues. It sounds as if they didn't make a full payoff and the HOA is still trying to collect from the previous owner. As part of a short sale I negotiated a less than full payoff for past due HOA dues to get the bank and HOA to allow the short sale to take place. Since you've already closed escrow, it's too late for that. Even if you could get the HOA to settle for less, the previous owner is not motivated to pay anymore since they no longer own the home. On your closing statement see what was paid for the HOA dues from the bank and ask the property mgmt company how much is owed. Gather as much info as you can and always document who you talk to and write down all the details. Then, take all your info to the board mtg like was suggested here. Were the HOA transfer fees and documents filed and paid through escrow? That's what puts your name on the property mgmt paperwork as the legal owner. They charge a fee to transfer the account into your name, and without that fee being paid they won't change it. Ask escrow or your realtor to be sure. Perhaps it was overlooked? Good luck to you!
Hi T,
On a short sale, the HOA has every right to pursue the past due HOA fees from the former home owner. Most HOA's are unsuccessful in collecting those fees, but it does not stop them from trying.
We recommend you go to the next HOA meeting with the purpose of getting your checks cashed. The Board attends the HOA meetings Make sure you make copies of the the checks you send to the HOA. Bring the copies of your checks to the meeting and request they are cashed. Also, bring a copy of your closing statement as well to show them the closing date and the funds paid through escrow.
Best of luck to you, remember you catch more bees with honey than vinegar.
Best regards,
Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate
T- I think you have been given some good advice. I too would suggest going to the next HOA meeting and asking why your checks are not being cashed. In addition, beforehand, I might suggest that you speak to the agent and escrow officer that helped you with the purchase, and ask them to clear up whether or not the past HOA fees were paid before close of escrow. If they tell you that they were, ask for the documentation that would show that, and enclose it with your next payment. It just doesn't make sense to me. If things were cleared before the close of escrow, there is no reason for them to be going after the previous owner.
I wish you the best on this mess. It should be easy to clear up.
Patti Phillips
"Advice You Need, Attention You Deserve"
800-680-9133 or 619-507-2100
Hello T and thanks for your question.
First off, the actions of the HOA manager are completely, flatly incorrect. You are the owner of the home, and should be duly recognized as a homeowner and a member with rights from the day your home's deed is recorded with the County. While I can understand if the Association wishes to pursue the delinquent assessments with the homeowner personally, the sad fact is that once the home is foreclosed and sold, the Association is unlikely to collect anything from the bank or the delinquent homeowner. As a result, the "excuse" being used for not recognizing you as a homeowner and not cashing your checks is truly suspect.
Since Boards of Directors tend to leave the daily operational functions in the hands of the manager, and the manager can "filter" the information that goes to the Board, I'd strongly suggest talking directly with the Board members to let them know that you're an owner and have not had records change to reflect ownership although you've been in touch with the Association manager to let them know of the situation. This way, you'll at least confirmation or denial that this is how the Board had been advised or had approved treating you as a new owner. However, in all my years managing homeowners associations, I have never ever heard of such actions taking place here in California.
If you cannot resolve this matter with the Board of Directors, your next step is to speak with an attorney. You certainly do not want your own assessments to go into arrears to cause your home to be placed into collections with the Association.
Good luck!!
Sincerely,
Grace Morioka, SRES, e-Pro
CID Manager and Consultant
Area Pro Realty
San Jose, CA
Keep copies of the checks you give them. Send them "return receipt" required, and go to the next hoa meeting. The HOA can go after the former owner...and still show you as the new owner. Just be glad that they don't want you to pay past HOA dues....although, usually...these would have been paid thru escrow too. I hate to say, get a lawyer...but be very careful and have more than enough records.
Best of luck,
Joan Wilson (Realtor, SRES, Ecobroker)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
Fax: 760-946-7894
JoanWilson@prusd.com
License # 01341483
Sounds like your going to need an attorney to help you with this issue. However, you might want to attend the next HOA meeting and voice the issue with the other owners and see what their response might be. Make sure you document all conversations and keep copies of any letters regarding the issue!
A.J.
Sounds Hectic.
I would definately have my HUD-1 from closing on hand at all times. As you stated, if the fees were paid at closing what are they going after the previous owner for???
Maybe you could give the guy before you and the closing attorney a call and find out what each of them are hearing independently from the HOA. Knowing what is being said to the others could be beneficial to you. Maybe something didn't get properly recorded from the closing.
Good Luck,
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