Have you been following the HOA as it impacts short sales?
The Unintended Consequences of The HOA in Short Sales
Then Florida Short Sales- So HOA Lawyer-What Is Your Intention?
So now we are here the day before closing and the buyer is going to come up with $600 towards the $5000 that the attorneys for the HOA are extorting from the transaction and will not release their lien without the full payment of their legal fees! Remember the sellers owe about $5000 in HOA fees but the other $5000 are legal fees!
Short Sale Closed
Property Location: Miami
Property: Condo
Investor Owned Property
This unit had tenants that refused to pay their rent. The sellers live in New York and had to get the tenants evicted. This put them in the hole financially.
Hardship: Can not get a tenant to cover the payments and HOA fees.
Amount owed to Bank Of America: $200,000 = 2 mortgages originated with Countrywide. The second was a HELOC. Freddie Mac backed mortgage security. Freddie owns the 1st loan, BofA owns the HELOC.
Bank of America approves a $5000 payment to the HOA fees but no payments to the attorneys for the HOA.
Sellers send in $5000 cash to close and to avoid a foreclosure that was looming over their heads from both the HOA and Bank Of America.
Amount sold for: $99,000 ALL CASH- Sold to an investor.
NO promissory note, No repayment plan.
As you can read in the previous posts, this was a nightmare deal. When we took the listing the property was worth $130,000 but we went through 3 buyers- 1st buyer walked, 2nd buyer lost his job so he got a loan denial.
We listed this condo in January 2009. We finally closed today!
So there you have the rest of the story!
Avoid Foreclosure! Call Nestor and Katerina Gasset for Short Sale Information Today- 561-753-0135
To view Florida Short Sales- Click here. We know Palm Beach County Short Sales and Port St Lucie Florida Short Sales and will help you get your home Sold if you need to Sell your home and help you buy your home in Palm Beach County Florida: Call us today.
Copyright © 2010 By Katerina Gasset, All Rights Reserved.*Short Sales- The Nightmare That Finally Closed!*
Nestor Gasset and Katerina Gasset- Realtors®, CIPS, ABR, SFR, GRI, REOS
We need to deal with the liens that condo, coop and HOAs put on properties. I am in the process of listing a property that will have a $15,000 plus HOA lien on it. Fortunately the seller is the bank and they will have to deal with the lawyers on that one.
Congratulations on the close of this short sale! Thank you for posting about the potential problems that exist when sellers do not pay their HOA's.
Katerina - These HOA's gotta give! Good job, one year is not too bad for three buyers!
Yes I have been reading the ORDEAL.
Unbelievable, seriously only you and Nestor could have got this done. Most agents would have given up, walked away or flubbed it up. Seriously, now go have a glass of wine.
Next...
Thanks for your comments! It is off to get ready for some more closings this week, last minute hassles with HSBC I have to get over. I like them- they put up a good fight for every penny and so do we- we met our match with them:) Posts coming your way!
Congrats. Short sales can get frustrating. It's good to hear you got this one closed.
Katerina,
What a ride. The mine field in short sales is extensive and here it came in the shape of a HOA attorney, among other things.
Yes, put your feet up and have a drink to celebrate. But remember, there's another one just like this in your future, so keep your strength up.
Congrats! just think, now you're ready for a really, really hard one! jk