I would like to bid on an apartment!
How can I find out unpaid HOA fees?
It is owned by a big bank and I had no luck communicating with them.
The association will give out information to the owners only.
HOW CAN I FIND OUT THE HOA FEES BEFORE I BID?
CAN I CALCULATE THEM SOME HOW?
An REO? Should be paid by the bank, if buying thru MLS, unless otherwise stated. If one of the auction houses, check their auction "offering".
Thank you Wayne, I am asking because few months ago I won an auction. The apartment was empty and my broker told me when ever it is empty and bank owns it it will be paid by the bank. 2 weeks later bank called me and asked to pay 20k HOA. After that wanted to split owed HOAs. I said NO, never made the deal. Lucky I got my auction fees back.
I AM NOT SURE IS THIS COMMON PRACTICE?
@Jaago Viitkin The association will usually give out the amount of unpaid HOA dues to the attorney or title company if the know a sale is about to occur. It's in their best interest to cooperate if they want their money.
Where I'm from, the unpaid HOAs are a title defect, and therefore must be paid or waived by the HOA for the title company to insure the title. I just walked away from a Fannie Mae condo because they refused to pay the $4,600 in HOA dues, the HOA wouldn't waive the dues and therefore the title company wouldn't insure the title. Fannie Mae wouldn't even reduce the sales price so I could pay them. They threatened to take the HOA to court, but I just found out they simply put it back on the market and expect the buyer to pay the back HOA dues.
Good luck to you!
@Jaago Viitkin gain some friendship through one of the Board Members of the HOA. Preferably, the treasurer as they should be seeing this info every meeting. It's not allowed that they share that kind of info with you but you can't control people's actions. Otherwise, buy the place and get on the Board so you have the inside tips on the units in foreclosure.
Originally posted by @Christopher Leon :
Jaago Viitkin gain some friendship through one of the Board Members of the HOA. Preferably, the treasurer as they should be seeing this info every meeting. It's not allowed that they share that kind of info with you but you can't control people's actions. Otherwise, buy the place and get on the Board so you have the inside tips on the units in foreclosure.
There are lots of people that will have an issue with a board member buying up a bunch of units since it could be considered a conflict of interest and while I don't know of any legal repercussions to doing it, it certainly doesn't give people the warm and fuzzies. Also, depending on the size of the association and how many units are purchased, it may even disqualify them from FHA approval. Trust me, I've had the same thoughts as a PM and eventually, I'll buy one in one of the buildings I no longer manage.
Once a bank forecloses on a condo, it becomes the new owner and becomes responsible for all of the HOA dues from that point until they sell the property. Having the buyer pay these fees is a tactic to recover as much money for the bank as possible but it definitely rubs me the wrong way. I bought two REO condos in California and never had an issue since the banks readily paid the fees that sellers normally pay for. Maybe it depends on the asset manager.
I don't know if there's an effective way to find out what the unpaid HOA dues are besides having inside information. I would just approach the deal as if the seller were going to pay all the unpaid dues through escrow (seller debit) since that's normal practice in my market. If they refuse, I'd walk away unless you're getting it at such a low price that you'll still make money even if you absorb the cost.
Depending on the state you are in the lender is often willing to pay the HOA dues current even if the loan is delinquent bc they can foreclose on the property and take first lien position ahead of even the 1st mortgage. We have successfully gotten the bank to advance these fees and roll it into the over all loan debt to avoid just this. A majority of the time the lender is not even aware of the HOA situation bc it is typically not an escrow item.
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