A title insurance policy will be issued once there is a clear title. An outstanding balance of HOA fees clouds the title. It woud be the responsibility of the current owner to bring the past due amount current. If you are seeking advice, hire the counsel of an attorney to review closing documents and also take the time to review the fiscal stability of the HOA during your due diligence period.
If you are a first time homebuyer (you and your spouse cannot have owned a house within the past 3 years) you may be able to get up to $7,500 towards your downpayment and closing cost via a State of Florida Bond Program. You MUST use a regular FHA, VA or USDA mortgage and MUST use an APPROVED lender on the list. To see if you qualify and to find a lender, go here:
All the best,
I recently closed on a Short Sale with the mortgage owned by Fannie Mae and they approved the payment of $5k for past due HOA assessments and HOA attorney fees.
I have seen situations where the approving lender limited past due HOA fees to a maximum of 1 year.
Do you already have a contract and the final approval letter is not allowing the HOA fees to be paid or are you just anticipating a situation that may require the buyer to pay extra HOA fees?
All the best,
Alma Rose Kee PA
Future Home Realty
In Massachusetts a certificate is required at closing showing all fees are paid to the condo association. Also, here in Massachusetts condo fees are a super lien and need to be paid even before the first lien holder. (up to 6 months back HOA fees)
As a Massachusetts Short Sale Realtor, many times we get the bank to pay arearages on HOA fees, though difficult. I always recommend my short sellers to keep up on HOA fees and sewer and water as they can be difficult to get paid by the bank.
So if the bank is unwilling to pay, the seller can't pay that leaves you the buyer to decide whether you want to pay them at closing or not.
Burdick International Realty Inc