Home Buying in Tampa>Question Details

Value Seeker, Home Buyer in Tampa, FL

If the property is a short sale and also has unpaid HOA fees, then when buying can they be combined on a loan or can you only get a loan on the house?

Asked by Value Seeker, Tampa, FL Wed Mar 21, 2012

Help the community by answering this question:


Value Seeker, The date of the foreclosure may impact who is responsible for the HOA fees. The laws addressing this matter have changed quite a bit in recent years. The lien holder with the first initiative in the foreclosure is limited to being responsible up to 1% of the amount due. If there is a residual balance after this amount, (Florida statute 720.3085 to the lesser of 1% of the mortgage value or 12 months of past due assessments) The Association is suppose to write off the residual balance.

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.

Best regards,
Lynn Brock
1 vote Thank Flag Link Thu Mar 22, 2012
Hi again,

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,
Alma Kee
0 votes Thank Flag Link Sun Mar 25, 2012

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
0 votes Thank Flag Link Thu Mar 22, 2012
You can only get a loan on a secured asset only. Unpaid HOA fees are not an asset.

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.
0 votes Thank Flag Link Thu Mar 22, 2012
Most HOA require past assessments and dues be paid up front. Why would you want to add something like that to your 30 year mortgage anyway.
0 votes Thank Flag Link Thu Mar 22, 2012
HOA is the homeowner's responsibility to pay, however, in case of a short sale they may not be able to do so, the bank may or may not pay for it or will ask the buyer to contribute. I don't think you can add it to the loan amount. If not paid, HOA can put a stop to closing.
0 votes Thank Flag Link Wed Mar 21, 2012
In most of the short sales in Tampa and Florida that we have done in this situation, they tried to make the seller pay first, and really were strict on it unless the buyer did not have the money to pay for them and it was evidenced in the short sale package containing their financials. I have seen the banks and buyer pay in a few circumstances though. It depends on the bank and who has the loan, but if it becomes a deal breaker for the seller and it can't be done, then we have been able to negotiate the bank or buyer to pay.
Chas Burdick
Burdick International Realty Inc
(800) 743-0271
(813) 279-2030
0 votes Thank Flag Link Wed Mar 21, 2012
Fannie Mae backed loans (as well as some other lenders) will not pay for unpaid HOA fees on a short sale. A few lenders will, but they are in the minority. HOA fees are an owners personal obligation. If the HOA fees are not paid, it can result in credit damage, lawsuits, or other collection efforts.
0 votes Thank Flag Link Wed Mar 21, 2012
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