can I short sale my condo if the HOA has a lien against it? I negotiated for a new auction/sale date and was granted more time until 03/30/2012.

Asked by Sally, Las Vegas, NV Sun Feb 19, 2012

Originally, I had a sale/auction date of 02/24/2012. So this question may be familiar to you. From the answers I received originally, I know that I can do a short sale with the lien in place. What next?

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Steve Matthe…, Agent, North Las Vegas, NV
Sun Feb 19, 2012
Hello Sally,

Congratulations! So nice to hear that you were able to get a postponement to your foreclosure. You will recall that in your other question posted, everyone said you were out of time, but me. I advised you that it was in fact possible to stop the sale even though the sale was scheduled for 2 weeks away. Now, we need to put your home on the market and get a buyer. That is what the bank is allowing a very short period of time to achieve. They will want to see quick and decisive action to get your home on the market and an aggressive effort to obtain an offer. Then we have a very short time frame to obtain all of the documentation that the bank requires and submitted in the format they require. This means you need someone who has been successful at packaging and negotiating short sales to work on your behalf. I am confident as I was in your last question that we can help you. Please call me or email me and I will be more than happy to help you short sale your home.

Now, with regard to the HOA lien, there is a little understood and often passed over statute in the State of Nevada with regard to HOA liens that says that the HOA can only collect up to 9 months of HOA dues, plus collection costs. This is known as the "Super priority" amount. First we negotiate with your Lender to pay all costs including the HOA. We expect the lender to only allow a certain amount toward the HOA lien, so at the same time we approach the HOA (which is most likely now in collections - so the collection agency) and negotiate a reduced amount equal to the "Super Priority". That amount is always acceptable to the bank because if they foreclose, that is the amount they will be required to pay when they dispose of the condo plus their new monthly dues from the time they foreclose to the time they dispose of the unit.

I can not tell you how happy I am that you were able to get the sale postponed.

Best of luck, and thanks for reading. I hope to hear from you and the opportunity to help you create a good outcome for your situation.

Steve Matthews
Prudential Americana
0 votes
Ronnie Bramer, Agent, Fort Thomas, KY
Tue Feb 21, 2012
Sally, do you have a contract on your condo now ? you did a good job in getting the date extened however you do not have much time to work with . They maybe more options avaible to you than short selling if you would like to stay in your home . I work with a national law firm they maybe able to help you fight off the foreclosure email me for details. I need to ask you a few questions to see if you would qualify for the program.
1 vote
Suzie Marqua…, Agent, Las Vegas, NV
Sun Feb 19, 2012
You can short sale your property with a HOA lien in place. It makes the process more difficult. The HOA lien is hard to deal with. A few things that will make a difference is the amount and if there is an attorney that is now trying to collect. If the lien has gone to collection it is often very difficult to get the law firm to reduce the payoff much. The lien is accruing daily interest. The negotiators at the bank will usually not pay off large HOA lien amounts. I have negotiated over 100 short sales and getting the lender to pay of large lien amounts is the hardest part of the negotiation. It is not impossible. I have a file right now that has a large credit card amount that is a lien on the house. Through some creative wrangling we are getting it paid through the short sale.
Nevada is Super lien State and we do have some new laws in place but the HOA's are usually very hard to negotiate with. I hope this will give you some insight into what you will be up against.
Thank You
Suzie Marquardt
1 vote
John Longeway, Agent, Henderson, NV
Sun Feb 19, 2012
Hi Sally,
It is possible to short sell your condo.
Please call me or shoot me an email if you need a qualified Realtor.
I will explain your options and we can move forward.
John J. Longeway
Keller Williams Realty So. Nevada
office: 702-777-0002
cell: 702-325-4833
0 votes
Alain Picard, Agent, Puyallup, WA
Sun Feb 19, 2012
To do a short sale you should talk to a local real estate agent and tell them what you want to do. Also you or your agent will have to talk to your lender about what they will need from you. If the HOA has a lien on it someone will most likely have to pay on that before you could transfer clear title to any buyer.
0 votes
Aneta Ivanova, Agent, Las Vegas, NV
Sun Feb 19, 2012
Are you working with agent? Is your condo is listed with Certified disterss property expert? If it is not call me I will explain to you the whole procedure, but if you work with somebody, it is responsibility and fudiciary duty to listing agent to tell you how to proceed. Generally you can do short sale with lien from HOA .My advice is to hire the experience short sale professional, because the process is complicated, and no reason to try to do by yourself.
0 votes
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