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Answers (13)
- Bill Kruckenberger, "billkruck"
- Contributions:41
This missing piece of the puzzle is what purchase price have you agreed to purchase the condo at...
If you agreed on a price that is at least $30k below comps, then this may indeed still be a good deal for you, depending on alternatives and your reason for purchase.
Good luck!
If you agreed on a price that is at least $30k below comps, then this may indeed still be a good deal for you, depending on alternatives and your reason for purchase.
Good luck!
- riteandready2buy
- Contributions:15
30,000 Debt of HOA fees to be paid by the buyer?????? Is their a lien? there may be a lien on the property by the HOA. Do your research!!! You are trying to get a deal, not a headache.
- sunnyview
- Contributions:25127
The seller's attorney is not working for you because they are working on behalf of their client. If their clients interests align with yours, that fine, but if not they will negotiate whatever deal is best for their client.
- Angie Boggeman, "angie boggeman"
- Contributions:469
Who is telling you that the lien holder won't pay the HOA fees? Has the agent been notified to take it off of the preliminary HUD? Do you have representation? I have had buyers pay the sewer bill in order to get clear title, but never HOA dues. In the case of the sewer bills the buyer felt that it was a good deal even with covering that. I would wait and find out more specific details and then look to see if the numbers make sense.
- NYCQuestion
- Contributions:3
I really like the condo. How can I be assured the seller's attorney will do absolutely everything within her power to negotiate the HOA fees down? Technically the seller's attorney is working on the seller's behalf and not mine, and I'm concerned the she'll only focus on the getting the mortgage approved and won't focus on the HOA fees.
Again, thank you, thank you, thank you ... your responses are extremely insightful.
Again, thank you, thank you, thank you ... your responses are extremely insightful.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Really? Is it the only condo on the market?
- Katy Anastasio, "Anastasio"
- Contributions:59
It depends on how much you like the place, will you be sorry if someone else bought it? If not keep looking. Either way try to negotiate the HOA fee.
- Karen Holder, "KarHold"
- Contributions:24
I have completed many short sale deals and never has a buyer been responsible for the past HOA debt.. The seller's lender has always negotiated those and paid those in order to sell the property. I would not agree to those terms.
- Todd Neal, "Todd M Neal"
- Contributions:20
Condos and Townhomes are still softening in many markets so backward looking comps are not very good indicators of present or future value. The HOA balance is a material fact that should have been disclosed. It should be deducted from the seller net since they did not disclose. Consider waiting for the bank to take it back as a foreclosure and buy it then - the HOA liens may be wiped out or reduced. There will be more deals if this doesn't work out.
- Craig Fialkowski GRI ,CDPE, "craigfial"
- Contributions:571
Yes, you can attempt to negotiate the fees, and you can use this as your get it done tool in your belt. Check the law in your state about how much the lender would have to pay the HOA when they foreclose. Some states limit the amount the HOA will get. In Florida it's 1% or 12 months HOA fees whichever is lower. So if the bank forecloses, basically the HOA would only get a small percent of what they actually owe.
What I recently found out, is when the banks foreclose, they really don't have to pay anything. The lien is discharged at the time of summary judgement and banks are wise to that.
As always seek legal counsel, and this is from experience in Florida.
So, you can basically tell the HOA, if you buy the property, you will pay "X". If the bank forecloses, you get $0 or close to it.
So you are infact offering a much better deal, and they might just take the money, be happy to have a new owner, and move on.
Add up all your costs, and as long as the value is still greater than your total purchase expenses, then go for it. Make sure you add in your renovation expenses. I'm guessing it will need, flooring, paint, possibly appliances, and A/C checkup.
- NYCQuestion
- Contributions:3
As is my offer is $70K - $80K below market value, and with the HOA considered my offer is about $40K - $50K below market value. I understand the bank could counter my offer, but right now I'm unwilling to go higher knowing the HOA is so huge. Also, I'm waiting for the seller to provide me with an itemized bill to understand what's included in the HOA bill.
- wetdawgs
- Contributions:26786
It sounds like a really bad deal if you have to come up with $30k above and beyond market value. That amount won't add a penny to the value of the condo.
- B Mike West
- Contributions:240
If the price you agree to pay AND the $ 30,000 total the current marrket value or less it may be a good buy. If not, you will be paying more than market value. Is that something you are wiling to do?
I wouold suggest that you push back and see if the lien holder may be willing to cover part of the HOA fee, the more the better.
I wouold suggest that you push back and see if the lien holder may be willing to cover part of the HOA fee, the more the better.
Am I making a wise short sale purchase, since I'll have to cover the seller's HOA debt of $30K?
I am interested in purchasing a short sale condo. The condo is worth between $420K - $435K based on the comps. My offer was just accepted by the seller, and I just learned that I'll have to cover $30K in back HOA fees. I am hoping this amount will be negoiated down, but it's unlikely the seller's bank will cover these cost. In addition, since I can't add this amount to my mortage, I might have to obtain a line of credit to cover the cost. I have great credit, but I wanted to know if you think this is a wise home purchse? Thank you in advance for you assistance ... its greatly appreciated.
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