Home Selling in 80134>Question Details

Kathy, Home Seller in 80134

If the home is worth less than I owe, is that a different situation, where the HOA lien on the lender?

Asked by Kathy, 80134 Sun Feb 15, 2009

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Hi Kathy,

The very term short sale refers to the situation in which the proceeds from the sale are “short” of paying off the various liens and encumbrances on the home. These include any mortgages, tax liens, HOA liens etc. I recently negotiated a short sale on behalf of a Seller in Douglas County who had to sell but the value of there home was not quite enough to pay off the first mortgage, never mind the second mortgage or the large HOA lien. After lengthy negotiations I was able to get all lien holders to agree to accept a large reduction in the amount each was owed. One technique that may be specifically applicable to you is a term called the Superlien which holds that the lien value has a cap of up to a total amount equal to six months of regular assessments, plus attorney fees, interest and other allowable items. Although an attorney is best suited to clarify the ramifications of this- it may be helpful if you have accrued a large HOA lien.

I’ve done an extensive amount of work with short sales and will be happy to answer more specific questions when you’re ready…

Bob Maiocco
Broker Associate
The Maiocco Team, Inc.
Keller Williams
(720)273-4262 direct
0 votes Thank Flag Link Sun Mar 8, 2009
Hi Kathy,
It does not matter what you owe on the property. The lien will be put on the house regardless. If you are plabnning on keeping the house you will have to work something out with the HOA to get that lien off. If you are planning on selling the house, you will also have to work something out with the HOA to take the lien off before you can sell. If you are trying to do a short sale, the lender will gnereally have to pay the HOA lien as part of the terms of short sale.
Michelle Hall
0 votes Thank Flag Link Mon Feb 16, 2009

The HOA lien is usually on the house, not the Lender, The seller or anyone else. It Is a lien on the property itself. I have not seen it done another way unless the HOA is going after the owner. I would advise speaking with a Attorney as they would be the best people to give you the correct answer. I hope this helps.

Mark Kinslow II
Coldwell Banker
0 votes Thank Flag Link Sun Feb 15, 2009
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