Home Buying in 89014>Question Details

April, Home Buyer in 89014

Short sale purchase was to close last week. At the last minute I was told that there is a hoa debt, and I have to pay additional $8500.00 to close.

Asked by April, 89014 Sat Apr 16, 2011

Can I walk away now? Do I get my emd back and the home inspection fee I paid?

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6
This is not uncommon but very avoidable. The "surprise" might not have occurred had someone contacted the HOA. In all my transactions for my clients that are in HOA's I write up in the contract that we want to have all HOA documents provided, including, but not limited to: Yearly meetings, reserve studies, etc. I used to have to write that into our Sales Agreement, but recently our association which provides our real estate forms created an entirely new on for condos and it includes all this good stuff.
0 votes Thank Flag Link Sat Jun 9, 2012
April,

Hopefully, you will be able to work this out thru the agent who represents you. You may need to get the advice of a real estate attorney if it can't be worked out. But,, many times the this can be worked out by getting the bank to absorb the fees or the seller, but we are seeing increasingly that the banks Don't want to absorb these fees and may even allow the home to go to foreclosure than do the short sale.
Web Reference: http://www.VegasDawn.com
0 votes Thank Flag Link Tue May 3, 2011
Unfortunately this is not uncommon. Hopefully your contract allows you out. A client was in same position. The cost of the added charge was offset by the deal they were getting on the price and the property supported the extra payment. The seller was good enough to help out with some of it.
0 votes Thank Flag Link Mon Apr 25, 2011
Hi April,
This is not in any way legal advise. HOA debt is very common. Usually the seller or the bank pays this. You can refuse to close escrow and ask for this to be paid for by the bank or seller. Short sales only have 39% over all closing rate because of these factors that pop up. This should be the sellers cost not yours.
Good Luck
Web Reference: http://agentmitro.com
0 votes Thank Flag Link Mon Apr 25, 2011
This is not intended to be legal advice but in my opinion, the sellers (in this case the present owners & their lender) bear the responsibility of providing the buyer with a clear title. Asking you to absorb a $8,500 debt associated with the property is unreasonable and excessive.

As previously stated, walking away may get your ernest money deposit back, depending on the contract language, but the inspection fees will likely be absorbed by you.

Hardly seems they are playing fair, does it!

Bill
0 votes Thank Flag Link Sat Apr 16, 2011
Depending on the language of your contract, it's possible to get your earnest money back. However you will probably have to take a loss on the inspection fee.
0 votes Thank Flag Link Sat Apr 16, 2011
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