Jul 15 2010
HOA Fees Generating Problems In Short Sales
Welcome to Shortsalepowerhour.com. We are Kevin Kauffman and Fred Weaver, Group 4610, which is Arizona’s foremost short sale team. Today is unforgettable Friday and we would like to chat on the subject of HOme Owners Association Fees. There is a lot of energy out there about the HOA fees. From the lender side and the agent side both are wondering why each aspect ought to pay. The entire time, the Home Owner Associations are making out like bandits. The fact that you have to pay $300+ dollars to even get a pay off is preposterous.
We were dealing with a servicer on a file and the servicer confirmed that they wouldn’t recompense for HOA’s. So, we wrote an email to a supervisor at Freddiemac to figure out, in general, what their guidelines are on Home Owner Association fees. He noted that Freddiemac will reimburse six months of delinquent HOA fees. He also alluded to the fact that they would pay more than six months if the financials of the resolution make sense. He was evidently illustrating that this choice was about savings over foreclosure. Yet, we run into positions where we have to fight around HOAs.
We recently had a folder this past week where the negotiator came back to tell us that Arizona is a super lean state. The funny part is that she did not say they will not pay it or can not pay. She said that she does not have to pay it. If the property goes to foreclosure, the bank doesn’t owe those back fees. However, the bank would have one more REO Property. We are exhausted of having that discussion with lenders. Does it save over foreclosure or not. That is truly the single thing that matters.
Loss mitigation is already complex enough. So, let’s not make it any more taxing by making it a skewed process that is based on some upper level executive’s happiness.
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