Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 679 votes
My client just lost the chance to complete a short sale because of an HOA, and it hit close to home because the same thing happened to my mom years ago. Short sales can fall apart for many reasons, but HOA intervention is one that almost nobody talks about. Once an HOA steps in and takes control, the homeowner usually loses the ability to keep negotiating, even if the bank was close to approving the deal, and from there momentum dies and foreclosure moves forward. What makes it worse is that the HOA was letting the property fall apart the entire time. No repairs. No progress. Just delay. I've seen this play out dozens of times, which is why I always say think twice before buying a condo. Between aggressive HOAs, special assessments becoming more common across Florida, insurance issues, and buildings that no longer qualify for financing, what looks affordable on paper can turn into a financial trap fast. What has your experience been with condo expenses and HOA issues?
Real Estate Broker · Jacksonville FL & Middletown CT · Member since 2008 · 1k+ posts · 632 votes
8mo
This is why I will no longer list short sales if the homeowner is not willing to pay the HOA fees. Mortgage defaults are pretty easily cured with a short sale. HOA not so much and they move way faster to foreclose than a lender ever will. I just had one where we spent months trying to work the short sale, but the owner had never paid the $60/month HOA and in the end all the work was for nothing when the HOA Foreclosed over the $8000 balance. Brutal.
Investor · Miami, FL · Member since 2025 · 33 posts · 29 votes
9mo
Hola Jorge
I agree with you. In South Florida, especially in Miami, HOAs have created a very difficult environment over the years. Overreach, questionable decisions, inefficiencies, and in many cases outright dishonesty have become part of the landscape. I’ve been investing in condos in South Florida since 2009, and after the pandemic the situation clearly deteriorated.
In one building I invested in, the HOA spent about $140,000 replacing pool furniture. After reviewing suppliers independently, comparable quality furniture could have been purchased for roughly $15,000. In another case, something as simple as replacing an appliance required paying a $2,000 elevator security deposit, credit card only, plus a non-refundable $68 processing fee. These are not isolated incidents.
Stories like this are common across South Florida. Many HOAs have become aggressive, inefficient, and opaque in how they operate and spend money. In several buildings, monthly HOA fees and special assessments now exceed the mortgage payment. At that point, the owner is no longer the one in control. The HOA becomes, in practice, the real landlord, while the owner simply carries the financial burden.
There is a saying I hear often among Cubans in Miami: "We escaped the tyranny and communism of Castro only to end up under something even worse, the HOA". While it is said half jokingly, it reflects a very real frustration with how much power these associations have over private property.
Between rising insurance costs, constant special assessments, deferred maintenance, financing restrictions, and governance issues, HOAs are one of the main reasons behind the current condo price collapse in South Florida. Your warning about thinking twice before buying a condo is absolutely justified. I would go even further and say that thinking twice before buying a condo is unnecessary. Thinking once is enough, and that thought should be simple and clear: "Don’t do it, stay away".
Real Estate Broker · Jacksonville FL & Middletown CT · Member since 2008 · 1k+ posts · 632 votes
8mo
This is why I will no longer list short sales if the homeowner is not willing to pay the HOA fees. Mortgage defaults are pretty easily cured with a short sale. HOA not so much and they move way faster to foreclose than a lender ever will. I just had one where we spent months trying to work the short sale, but the owner had never paid the $60/month HOA and in the end all the work was for nothing when the HOA Foreclosed over the $8000 balance. Brutal.
