The ethical thing to do is pay your HOA...why should your other fellow homeowners suffer by your lack of payment. If you can't make your mortgage payment, that is between you and your lender. I have been asked a similar question by clients who ask "Should I still make my credit card payments if my house is going to be foreclosed, and my credit is going to go into the dumps?"...and I inform them "Yes, you bought the goods and services from honest hard working people, and you enjoyed the benefits of those goods and services, and you accepted responsibility to use the credit that was offered to you ...so pay them if you are able." I understand this is a tough situation for you...but you should try in every way possible to limit the impact of your misfortune on others." Just my humble opinion.
Yes, pay your HOA dues. If you don't pay your HOA dues while doing a short sale, they can put a lien on the property for the home. This could stop the final sale of the home if no one is willing to pay the dues. If you haven't found a specialist in San Ramon as of yet, please give me a call. I can do an analysis for you on your home, together we can decide how to price your home and get it on the market right away. I had four short sales this summer in which I was the buying and selling agent for a few of them. There were two of these short sales that had HOA issues. I can give you more information on short sales, what to do regarding HOA dues and then some. I could make this a painless process if you would like. I have a great system that is working for my short sales on getting them marketed, viewed nationally and sold in as short as 45 to 60 days. If the property is priced right, I could have this home sold in a short amount of time. You might be amazed! Remember, there is NO COST to you as the seller on a short sale. Call me if you are interested in getting a hard working, aggressive realtor that knows our area working for you too. My cell is: 925-628-9100
I hope this helps and look forward to hearing from you!
Lillie Missbrenner, Realtor DRE: 01711589
Certified Distressed Property - CDPE
Short Sale & Foreclosure Specialist - SFR
Certified HAFA Specialist - CHS
Your Real Estate Consultant for Life!
Better Homes and Garden (Previously Prudential California Realty/Mason McDuffie)
I am a Realtor as well as a Legal Assistant. I work for a Broker /Attorney. We actually had to stop the foreclosure of an HOA last week!!. So if you plan on selling your home, please pay the condo fees or try to have them taken out of escrow. You would hate to have the HOA foreclose and kill the deal.
First Weber Group
Certified Distressed Property Expert
Here is something to consider. Your bank determines what the ultimate bottom line for the short sale is. If you do not pay HOA dues, that expense is going to affect the settlement and your ability to close. The worst case might be is that you'd have to write a check at close the amount of the dues in escrow. If you have stopped paying the mortgage, I'd recommend you pay the dues....
Prudential California Realty
Keep living in your house until it closes and maintain the appearance. If you are able to pay for one thing, it is the HOA fee. If you don't pay it, the rest of the residents in the community will have to pick up your share. Unpaid HOA fees can also cause closing problems.
Speak with lender determine if you can reduce your payment still maintain your residence.
National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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Good luck with your short sale and be patient! Most short sales are viable and can close. They just take lots and lots of patience!
I believe, as others do, that you should consult your attorney in this regard. And can't ethically advise you to stop payment on any obligation.
I can, however, tell you my past experience with short sales where HOA is concerned. I have had a difficult time getting lenders to pay delinquent HOA dues in order to facilitate the sale. If the seller didn't have the money to bring it current or the buyer would not contribute, it can seriously hinder the sale.
So...you might as well pay it. It might be a stretch in your pocket book, but in the long run, it could seriously facilitate the short sale of your home, and...you do owe it.
Only a Real Estate Attorney can give legal advice.
Many people are going to advise you to quit paying, since it appears that you are going to sell the house via short sale, or lose it to foreclosure for non-payment. Many people will say, "Why keep throwing money into a pit?".
But again, only a Real Estate Attorney is qualified to answer your question.