Home Buying in San Jose>Question Details

Goldfish, Home Buyer in 95111

We purchased a short sale home and our agent told us that we have to pay an assessment fee for it. Is this true? And How much does it cost?

Asked by Goldfish, 95111 Fri Feb 3, 2012

This is our first time buying a home so we don't know much about it. What kinds of service do I need when purchasing a short sale home? Thank you.

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Answers

8
You have/had an agent. They are the only agent who is privileged to your contract and the answer you seek. Please reach out to your agent for the answer.

All the best to you.
Web Reference: http://www.terrivellios.com
2 votes Thank Flag Link Fri Feb 3, 2012
I am not sure what assesment fee you are referring to. Some agents charge a transaction fee that is payable to them. That fee is negotiable.
Some short sales require that the buyer have to pitch in, in some way but that to is negotiable. If you do not feel comfortable with what your agent is telling you I would talk to their broker or seek legal council from someone who specializes in real estate contracts & transactions.
Good Luck.
Web Reference: http://www.laura4homes.com
1 vote Thank Flag Link Fri Feb 3, 2012
As a buyer, it is rare that you would pay for an assessment. Any payment that is made must be shown on the HUD-1 form in order to maintain full-disclosure of monies paid to outside persons. This should be paid through escrow, whatever it is. Not sure what kind of assessment it would be.
Sincerely, Eileen Shydlowski, Coldwell Banker (408)307-3021.
1 vote Thank Flag Link Fri Feb 3, 2012
Unfortunately Bambi, Terri is spot on this time...you'll need to ask this question of your agent, and not of the Trulia professionals.

If you cannot get a good answer from the agent, ask to speak to the agent's broker for more help and perhaps a better, more thorough explanation.

Good luck,
Grace Morioka
Area Pro Realty-People's Choice
1 vote Thank Flag Link Fri Feb 3, 2012
Hello Bambi, the agent who wrote your contract should be advising you regarding this matter. If you do not get a response from them, please seek help from our local Realtor Association. Their web URL is:
http://www.sccaor.com
0 votes Thank Flag Link Fri Feb 3, 2012
Hello Bambi~ I also wanted to add you will need to be clear on the assessment fee from your realtor. If this is in an association with HOA fees the seller may be in the rears of payments. It could be a large sum so you will need to be privy to the amount, as I mentioned the Association will file a lien on the property for the unpaid amount. The bank will need to negotiate that fee. See this explanation.

If the association filed a lien, then it has a good chance of getting paid. Even so, the board can expect to be pressured by the parties to waive the delinquent assessments and release the lien. That is because the buyer is offering less than is owed on the property. In other words, there is no equity–nothing “extra” in the transaction to pay the association.

For example, if the mortgage was $350,000 and the short sale is for $200,000, the bank is taking a loss of $150,000. If the association has a lien for $10,000, the sale cannot proceed until the lien is satisfied. Since there is nothing in the sale to satisfy the lien, the parties will pressure the board (sometimes with threats) to release the lien otherwise the sale will fall through.

No Duty to Release Lien. Despite the pressure, the board has no duty to release the lien until the association’s claims have been satisfied. Even so, standing firm could cause the sale to fall through. This would leave the delinquent owner in possession (i) causing more delinquent assessments to accumulate and (ii) triggering a foreclosure sale by the lender, thereby wiping out the association’s lien.

Denise A. Szyszlo Realtor
DRE 01441160
Office:: (408) 369-2000 x319
Mobile: (408) 768-7097
Fax: (888) 334-0888
Email: denise.szyszlo@century21.com
Website: http://www.DazzleHomes.com
CENTURY 21-Alpha
419 E. Hamilton Ave, Campbell, CA 95008
0 votes Thank Flag Link Fri Feb 3, 2012
Thank you, Home Buyer for your question:

You have received excellent answers from Teri Velios, Grace Morioka, Eileen
Shydlowski, and Laura Coffey.

Eileen Shydlowski makes an excellent point that all money that is paid outside of escrow must be disclosed to ALL of the parties..

I recommend that if you do make any payments for any assessments, make absolutely certain that those payments are made through the Escrow holder and that ALL of those payments are disclosed on the HUD-1 form.


Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
0 votes Thank Flag Link Fri Feb 3, 2012
Hello Bambi~
I just want to add that you should have a clear picture of what this assessment fee is all about from your realtor.
Assessments in a short sell could be that the seller is in the rears for their HOA fees. In these case it also should be Negotiated. The better approach is to negotiate with the parties. If the board waives the association’s late fees, interest and collection costs, the buyer could kick in a little extra money on his offer and the realtors could reduce their commission a bit. With everyone contributing a little, the association could recover something rather than nothing. In addition, it puts a dues-paying owner in the property.

If it is a fee for the negotiator of the short sell this fee is NORMALLY paid by the listing realtors office or disclosed to you in the beginning of your offer, accepted offer or counter from the bank. Perhaps your realtor should go over this with you along with the listing agent on what your closing costs will be if.. the first loan and if a second loan has accepted your offer along with any other fees. Title can not close a short sell without all money and fees agreed by all parties, you the buyer, the seller and the bank. Sounds like you need to sit down with your realtor and listing realtor.

Best of luck, I hope this helps~


Denise A. Szyszlo Realtor
DRE 01441160
Office:: (408) 369-2000 x319
Mobile: (408) 768-7097
Fax: (888) 334-0888
Email: denise.szyszlo@century21.com
Website: http://www.DazzleHomes.com
CENTURY 21-Alpha
419 E. Hamilton Ave, Campbell, CA 95008
0 votes Thank Flag Link Fri Feb 3, 2012
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