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Goodlord, Home Buyer in Miami, FL

Miami Short Sale approved but condo association has lien on property (debt is $16,000) In average what percentage assoc is getting to release it?

Asked by Goodlord, Miami, FL Sun Apr 8, 2012

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7
Good luck I hate associations.
Just lost a deal because of them!
1 vote Thank Flag Link Sun Apr 8, 2012
First of all, you should have had this info in the beginning of the process, before making an offer.
You could have offered less than what you offered (by the amount that the association would take - I'd offer at least 50%, and if the negotiator can get them to accept less, you won't even pay all 50%).

Second, since you can't turn the clock back, please read the approval letter - it could be already stipulating a payment to the condo association.

Since you didn't know about this upfront, something is telling me that the negotiator didn't know about this until now either...If the association is represented by the attorney, or if there is a lien on the property from the association - your negotiator needs to go through the attorney. In most cases, attorneys are better than associations - and they get paid on getting the money from the owner/buyer.
If the association is not represented by the attorney, the negotiator needs to proceed with the lowest number for starters, unless you are under time pressure to perform under the terms of your approval and contract. The lowest number in this case could be 4K or 12 months of regular maintenance fees (which is the extend of the FL law payment to the association). The negotiator needs to explain to the condo association that the closing will be quick and the new maintenance fees will start being paid to the association right away. If you are under pressure, start from at 50%.

A lot depends on how receptive the association is, and some are unreasonable while other are absolutely fine, yet, having a good negotiator on your team is paramount for your cause of paying the least possible amount.

Good luck,

Irina Karan
CDPE
IrinaKaran@gmail.com
Beachfront Realty, Inc.
0 votes Thank Flag Link Fri Apr 13, 2012
If your situation is that short sale release involve that you as a Buyer has to paid for the entire lien them you have choices. One could be to be paid by lender, the other is you as a buyer to paid for. Additional, you as a buyer can go and seat down with association an negotiate one portion of the balances. Put in your mind that properties at Miami area are rising price and maybe in the next few months you have a good asset.
0 votes Thank Flag Link Mon Apr 9, 2012
A great deal does depend on the association and it's board, some can/are reasonable, others truly are not. A lot would depend on the amount of the monthly association dues in comparison to the balance. If it represents 2-3 years, your approach to the board can be to remind them that should the current lender proceed all the way to a foreclosure, they are only entitle to 12 months worth of fees, if on the other hand it represents less than a year, you may have to find a different approach in negotiating. You will want to present the strengths of the offer, the likelyhood of it closing right away and they can start collecting their fees from the new owner right away. I had one case in which the seller, contributed a small amount and the assocaition at least was able to see that the seller was at least making an attempt to help with the unpaid balance. Associations are difficult to deal with, but you just have to keep at them, just remember that in large part the are incontrol, so you will want to try your negotiation in a respsectful and logical manner. Good luck with the purchase.

Lila Lopez
RE/MAX Advance Realty
305-772-2521
0 votes Thank Flag Link Mon Apr 9, 2012
it is up to the association, it should be negotiated. However, HOA are difficult to negotiate with. Good Luck!!
0 votes Thank Flag Link Sun Apr 8, 2012
You can negociate everything.
Try to find out how many month are owed to association
and propose 50% to see reactions.
Call me if you need support 305 491 0492
or email HansKlemmRE@gmail.com
Best to you
HANS
0 votes Thank Flag Link Sun Apr 8, 2012
In my experience, 12 months of back HOA. Best of luck.
Danny
0 votes Thank Flag Link Sun Apr 8, 2012
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