I'm a buyer with a closing date set on a condo purchase (short sale). Is seller responsible for paying HOA arrears?buyer prob?Don't want

Asked by Gdcredit, Estero, FL Tue Jun 14, 2011

closing delay

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Michael Jackson’s answer
Michael Jack…, Agent, Bonita Springs, FL
Tue Jun 14, 2011
Every deal is different. Being that it's a short sale, the seller typically is not in a financial position to pay back HOA dues owed. Sometimes the bank will pay them, usually up to a certain amount depending on the purchase price and determined market value of the property. I just closed a property where my buyer had to come up with half of what was owed. You may want to consult with your Real Estate Agent and possibly even a Real Estate Attorney.

Good luck!
Michael Jackson
Keller Williams Elite Realty
(239) 919-6315 cell.
1 vote
Megan Eister, Agent, Fort Myers, FL
Sat Oct 22, 2011

Typically, in a short sale situation, the Seller can not afford to pay HOA fees that are in arrears. When your offer was submitted with the HUD to the lender, hopefully a good estimate of the arrears were included on the HUD to be paid by the lender. To get an exact estimate, the Seller would have to order an estoppel. The estoppel costs money, so an estimate is sometimes used in the beginning of the process.

Usually, the Bank will determine if they are willing to pay the entire amount owed to the HOA or a portion of the amount. Whomever is negotiating the Sellers short sale will find out if the HOA is willing to accept the Lender's offer of payment. If the HOA refuses the Lender's offer, then it may be up to the Buyer to pay the difference (usually by a raise in the purchase price) Properties that are subject to HOA fees add another important element in a short sale negotiation.

Good Luck with your purchase!
0 votes
Debra B Albe…, Agent, Port St Lucie, FL
Tue Jun 14, 2011
Home Buyer,

In a short sale, the closing agent is responsible for transfering the property without anything due to you the new owner. In a foreclosure, the story is different.

Do you have your bank approval for the sale? Once the bank signs off, they may try to further negotiate a HOA balance or something else, however, the property will not transfer with anything that you Have Not Agreed to transfered to you to pay at closing.

Hope this helps.

Debbie Albert, PA
Keller Williams Treasure Coast
0 votes
Rick Bush, Agent, bonita springs, FL
Tue Jun 14, 2011
Good question! Normally the Seller pays nothing and walks away with nothing. I have seen Lenders pay up to a year of HOA dues in short sale deals I have done. Carefully look at the HUD-1 statement to see where those fees are entered, however you may not see the HUD-1 until the day of closing! Check with the Title company who is doing the closing to confirm who they have as paying the HOA dues.

Good Information below in the link
0 votes
Marc Comisar, Agent, Bonita Springs, FL
Tue Jun 14, 2011
If you have a closing date set then the the pre-hud most likely reflects the back hoa's paid by the bank.......most likely.......keep in mind that there can be many different issues when chasing short sales. Be prepared for delays regardless.

0 votes
Danielle Sha…, Agent, Cape Coral, FL
Tue Jun 14, 2011
Past HOA dues become a lien and all liens must be paid on/before closing to convey clear title to the buyer. Most short sale agents submit a preliminary settlement statement to the bank for approval which includes any past dues. The approval letter will also indicate what they're willing to pay.

Your agent will be the best point of contact to answer specific questions and go over the approval letter with you.
Web Reference:  http://www.mysharphomes.com
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