Short (long) sale!!
Originally posted by @Starla Tarter:
We are working on a short sale investment. It's been 1 1/2 years!! Seriously!! We just got the sign off from the first and the second!!! Which is like a miracle!! Taxes are all up to date but now the hoa has added a huge amount to the hoa bill due. Only $6000 are actual hoa fees but they took it to a lawyer added late charges AND just the other day did a hoa (not sure if it is a judiciary or non-judiciary) foreclosure and entered it and "turned" the unit (which consisted of carpet cleaning and some blinds!) and put it up for rent. Well the added on fees are now close to $20,000. I had "thought" once they did a hoa foreclosure they could no longer collect on the back dues... Anyone have any insight on this or dealt with anything like this and have a suggestion on how to handle this hoa. And finally buy this unit!! ☺️
Well this can get a little tricky. I worked for HOA management companies for several years and I've seen quite a bit in regards to this. Since it's an HOA foreclosure, the HOA is free to tack on whatever they want to the bill and collect within the law. If they put a tenant in there, the rent collected with go towards the money they are owed.
If the HOA wants to sell, they will list the property with a real estate broker. The price of course will include any outstanding balances to the HOA. In other words, the balance passes on to the new buyer. You can try to make a deal with the HOA to cut down on the balance but depending on how hard up they are, they may say no.