David Cooper 702-499-7037
Most of the time, the sellers know when the HOA is not paid.and it should be disclosed to the agents and buyers. The HUD that the lender is provided by the escrow company is based on the information that is provided to them, and the bank is making the their decision base on the bottom net to lender/investor .
The buyer can cancel this agreement if it was not disclose to them or if this fact was disclosed on the HOA resale package during the due diligence period. As you can tell..its an important piece in this transaction!
Realty Executives of Nevada
Here's another wrinkle in the situation. The original purchase price was X, and the bottom line that the bank would accept is Y. After the buyer did due diligence and found some mold in the kitchen, they reoffered X-$3k. The lender accepted, but then INCREASED their bottom line amount to Y+$3k. This doesn't make much sense as their would be less money coming in, yet a higher bottom line amount.
This is exactly why Shortsales have taken on the reputation that they have.
There was a lot of talk, the end of last year, about a Shadow Inventory; houses that the Banks were sitting on, waiting for the Market to recover.
Supposedly, when a Bank refuses a Shortsale, they are supposed to file a report with HUD as to WHY:
If the Bank says; "Seller did not qualify", that is all that is necessary; nothing further.
You can be angry, or you can move-on, or you can be angry and move on.
Good luck and may God bless