Short sale due & HOA

[Jorge Vazquez]

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?

[Minna Reid]

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.