bank-owned house,.the bank asked me to pay the associations fee that were not paid before

Asked by Diana, Chicago, IL Tue May 20, 2008

I am buying a bank-owned house, and the bank asked me to pay the associations fee that were not paid before the date the bank took property of this house, Should I pay this amount? How do I do protec my self of any other unpaid amount that this house has?

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Shawn Anders…, Agent, Elmhurst, IL
Mon Apr 9, 2012
Asking buyers to cover these fees is pretty normal. Those sellers knowing they were going to loose their homes stop paying the HOA dues. I've seen some at $10,000. It is the first thing I find out before writing. I alos call to find out how the Association is doing with deliquents. I can can quickly assess if this has to be a cash buyer only or if your lender will decline the loan due to this exact info. Best to find this all out first. Your agent should have made these easy calls just out of due diligence. They should chexk with the village to see if there are any unpaids with them as well. I just did one where I called the asoociation myself and found out that my buyer would have to rplace the garage door within 45 days of closing because it was in terrible shape. You are on the hook for these fees the bank does not take responsibilty for them, wouldn't itbe nice if they did.
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Patty Romero, Agent, Homer Glen, IL
Tue Jul 27, 2010
I recently had a client that closed on a bank owned home there and one of the things the bank asked was that the buyer pay those past due association dues. After the attorney and I negotiated this, the buyer did not have to pay. Also, in this case, the seller was offering help with the closing costs, which exceeded what the buyer needed anyway.
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Robert Durham, , Plainfield, IL
Fri May 23, 2008
That is usually a negotiable item.
The bank will try to sqeeze money out of a lemon to avoid any extra cost.
Your attorney can be your best friend here if they are bold enough to take a stand.
From a banks point of view, the home owner should be responsible.
If it fact it was only $150 I would just pay it.
My hunch is that it is going to be a whole lot more than the $150 that Darlene projected, because if the bank reposed it and they now own it then the defaulted association fee will probably be at least 9-12 months behind.
If the fee were $1,000 (just a guestimate) then you could both split it down the middle to.
Hope that helps.
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Darlene Pytl…, , Glen Carbon, IL
Wed May 21, 2008
The fees for this association are pretty low, so you probably won't be out but about $150 including late fees. I live two houses down.
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Mwass, , Chicago, IL
Wed May 21, 2008
This is precisely the sort of question that your lawyer can and should answer for you. (you do have a lawyer representing you, dont you?).

Even if you are going this alone, you should still be able to find the answer in your contract. it will spell out the expenses that you are expected to take on, and the apportionment of "who pays what" other amounts that the house has.

In most contracts around here, the selling bank should at least provide you with a title insurance commitment (if not an actual insurance policy). the title report should list the debts, claims & tax obligations that are (or could be) liens on the property. that should at least help you determine what you might be facing.

and with all that said, I agree with Jeffrey. Unless your signed contact with the bank says that you have to pick up the association fees, they should not stick them to you now.
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Jeffrey Schn…, Agent, Austin, TX
Tue May 20, 2008

Any change to the terms of the purchase, which includes fees that were not discussed nor indicated on the contract as your responsibility, is a suggestion by the bank. If you were not told, and it is not included in the contract as your responsibility, then don't pay it.

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