Home Buying in San Ramon>Question Details

Goodperson, Home Buyer in Plano East, Plano, TX

can the HOA sell you home if you present a short sale to the bank........ email amerjamcorp@yahoo.com

Asked by Goodperson, Plano East, Plano, TX Sat Nov 26, 2011

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If I understand your question correctly, the HOA probably has a lien against your property. This will present a 'cloud' on the title, which will need to be resolved at the time of sale (short sale or otherwise). Typically the HOA is not looking to sell the property, only recover the dues for which you are in arrears.

Hope this helps!
1 vote Thank Flag Link Sat Nov 26, 2011
Hello,
As mentioned below, the HOA will have a lien on the property if there are unpaid back dues. I just sold a short sale and the lien was removed once the owner was able to pay the owed amount. All of these liens will have to be satisfied by the lienholders prior to the sale of the property. I also suggest you contact a local realtor experienced in short sales even though you are the buyer. It can be an arduous process and you will need someone to represent your interests througout.
Regards,
Suzanne Looker
0 votes Thank Flag Link Sun Nov 27, 2011
Hi Mr. Home Buyer,

The HOA can put a lien on the property but can not take the property. The first and second on the property will have more clout in the property than the HOA. Do you have an issue on a purchase of a property with the HOA or are you thinking of selling a home and are concerned because you may behind in those payments? I am a Short Sale Specialist in the area and deal with HOAs on purchases and sales. If you have questions or would like to discuss all your options, please give me a call.

Hope you had a good holliday and all my best,

Lillie Missbrenner
Better Homes and Garden, Previously Prudential California Realty
630 San Ramon, Ca
Cell: 925-628-9100
0 votes Thank Flag Link Sat Nov 26, 2011
the plus side of a short sale is that all of the lien holders need to be actively dealt with to arrive at a satisfactory resolution of the short sale, including the HOA if they have filed a lien (and these days most do if there is at least a 90 day delinquency). But the amount paid to each of them, including the HOA, is subject to a negotiated settlement. ( If the HOA is the first to file a Notice of Default, technically they could end up foreclosing on the property, but that is unlikely since generally the bank loans are senior to them so then the HOA has to make those payments and they don't want to.)

It is important to realize that while the HOA would love to get their back dues paid they are often more interested in getting a new owner who will in fact pay their monthly dues on time every month. As an agent I have successfully negotiated settlements with HOA's that included a major reduction in the amount paid and also no recourse back to the prior owner. It all depends on the specific circumstances.

Since it appears that you are moving here from Texas I strongly suggest you work with an agent who is familiar with this level of negotiation and can create a win/win situation for all the parties.

Good luck
0 votes Thank Flag Link Sat Nov 26, 2011
HOA's that have liens on the unit cannot just sell the property if you have a short sale. It's a lien that needs to be satisfied when you do a short sale, basically part of another party besides the mortgages that needs to be paid off.

The terms of the mortgage lenders should include the pay off of the HOA lien however. They do not want to cloud the title upon transfer.
0 votes Thank Flag Link Sat Nov 26, 2011
You are identifying yourself as a buyer....so is the question about an HOA selling YOU a home?

The HOA not the seller or owner of the unit. But if the seller is delinquent, and the HOA has filed a Notice of Default and lien on the property, the HOA will be one of the lien holders who need to be satisfied.

Unless the seller is selling and the property is listed as a short sale, there is no one who can sell you the property even if you submit an offer, without the seller's full involvement and consent to sell.

Best that you speak with an agent intimately familiar with what is involved in a short sale to explain the process, risks and benefits.

Good luck
0 votes Thank Flag Link Sat Nov 26, 2011
Mike is correct:
The HOA cannot sell you the property, because they do not OWN the property.
Someone, the Homeowner, the Bank, the new Buyer, someone will have to take care of the back HOA dues.
I wouldn't want to take that on, do you?

Good luck and may God bless
0 votes Thank Flag Link Sat Nov 26, 2011
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