Make sure the listing agent is putting the back HOA dues on the bank. Many times, the bank will pay back HOA dues. Based on our experience with short sales we've had the bank pay them, and sometimes if it is a high amount the bank will pay only a portion of the back HOA dues. If this happens, the best thing to do is to ask the HOA to reduce the amount they are owed. If all else fails, you may have to pay the back HOA dues. Especially if the homeowner is in a financial hardship.
Make sure your agent, and the seller's agent is experienced in negotiating short sales. It is crucial when navigating back HOA dues.
Either the HOA lien will be dealt with through the short sale process by either the existing lien holder agreeing to pay for it OR a combination of the lien holder, the current owner & possibly even YOU, agreeing to pay a portion of it so the HOA will release the home for short sale & the lien holder will agree to the short sale & allow the sale to happen.
It is also possible that the HOA will agree to let it sell for less than what is owed & then slap the (now previous) owner with a personal lien or judgment & go after them AFTER the sale.
You need to have your agent investigate RIGHT NOW what is currently owed & have the listing agent PLEAD with the property management company to NOT file a Notice of Default on the outstanding balance, otherwise the legal fees & major major fines start to kick in!!!===
Shoot me an email if you want to talk about this some more.I don't look back on this same Trulia thread for answers posted after mine.
Realtor Since 1996
Main Street Realtors