HOA Fees Producing Troubles In Short Sales
Welcome to Shortsalepowerhour.com. We are Kevin Kauffman and Fred Weaver, Group 4610, which is Arizona’s best short sale squad. Today is unforgettable Friday and we would like to talk in relation to HOme Owners Association Fees. There is lots of energy out there around the HOA fees. From the bank aspect and the agent aspect both are wondering why each aspect should 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 ridiculous.
We were dealing with a servicer on a file and the servicer acknowledged 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 disburse six months of delinquent HOA fees. He also alluded to the detail that they would pay more than 6 months if the financials of the decision make sense. He was obviously illustrating that this verdict was about savings over foreclosure. Yet, we run into positions where we have to fight around HOAs.
We recently had a file this previous week where the negotiator came back to tell us that Arizona is a super lean state. The funny part is that she didn’t say they will not pay it or can’t pay. She said that she does not have to pay it. If the home goes to foreclosure, the lender does not owe those back fees. On the other hand, the lender would have an additional REO Property. We are tired of having that conversation with banks. Does it save over foreclosure or not. That is truly the only thing that matters.
Loss mitigation is already complicated enough. So, let’s not make it any more testing by making it a skewed procedure that is based on some upper level executive’s contentment.
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