Home Buying in Queen Creek>Question Details

lesmitty.her…, Home Buyer in Queen Creek, AZ

friends of ours are buying a hud home.....all paperwork is in an approved on their end. Closing was scheduled and then cancelled b/cuz the hoa said

Asked by lesmitty.herrick, Queen Creek, AZ Fri Apr 5, 2013

hud had to pay the back hoa fees first. This is causing delay after delay. is there a way to expidite

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7
This is not an HOA problem, its HUD that has to get the old dues paid internally before they will approve the HUD-1 to close the file without the old dues showing up.

I know this doesn't fit 99% of what we do in other transactions, just an odd HUD business practice. I made the same argument, why does it matter etc its still the same pot of money just clear it at COE and we are good to go.

Nope, the old dues had to be paid by some other department first. Remember this is the government we are dealing with! Yes, my conservative tendencies are being revealed, sorry!
0 votes Thank Flag Link Fri Apr 5, 2013
The Realtor representing your friends should contact BLB resources and sit on hold until there is resolution. Your friend won't be able to close until Hud give their final approval to Blb Resources which then allows title to record the transaction.
0 votes Thank Flag Link Fri Apr 5, 2013
The delinquent HOA fees are typically paid at closing and show up on the closing statement (HUD). Why is the HOA requiring them to be paid "prior to closing" if I understand your comment correctly? That's just nonsense. I'd find out if the HOA has the right to make that requirement. Did anyone explain to the HOA that closing was right around the corner and they were going to get paid and now their payment will be delayed?
0 votes Thank Flag Link Fri Apr 5, 2013
Interesting. Thanks, Doug, for the knowledge.
0 votes Thank Flag Link Fri Apr 5, 2013
BParker the old HOA dues were not allowed on the HUD, had to be cleared before we could close the file.

They set the rules, logic doesn't work!
0 votes Thank Flag Link Fri Apr 5, 2013
Had this happen and as the buyers agent I was able to work with the HUD vendors to get the HOA dues paid. It did create a delay but I was able to expedite the process by keeping everyone communicating.

Lots of phone calls, emails and patience!
0 votes Thank Flag Link Fri Apr 5, 2013
Hello:

This is a ridiculous position for the HOA to take. Why would HUD, or anyone for that matter, pay the back HOA fees until the home is actually purchased. What should happen is the late HOA fees being paid be made a condition of the closing. In other words, once the deal is done, the title company is required to pay these late fees as part of their duty as the escrow agency. This is the way all such encumbrances, or liens, on a home being purchased are handled.

Are you sure this is the real situation?
0 votes Thank Flag Link Fri Apr 5, 2013
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