Profile picture for JudyPetrusky

I am buying a Fannie Mae property and the previous owner was in arrears on his HOA dues, I am told I

am responsible, by law, for up to 6 months of these old dues under the previous owner!!   This is crazy!!
Also, the realtor has given me wrong information from the start, regarding the current monthly dues that I will be responsible for.   I was told the
dues are $ 155.00 and this is in the contract.   Now, I am told they are
$ 190.00 per month!! He won't even own up to the error, and insists
that all documents have $ 190.00 listed as the monthly fee, which is
totally incorrect.  It states $ 155.00/month HOA fees!   ??????
  • July 11 2013 - Naperville
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Answers (8)

The management loves those HOA fees. You will be responsible for a max of 6 months of dues. You can have your attorney sue the past owner, but most likely it would not be worth their time and most likely the past owners have no money. That's why it's a Fanny Mae property.
  • August 09
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Particularly with a foreclosed property, but really any, information is discovered and verified through the purchase process. Sometimes it can be difficult for Realtors to obtain information and all management companies are not created equal. 

If the numbers change during the process of purchasing a property, you need to evaluate the purchase. The monthly assessments are not going to change based on a mistake or misinformation (they could also have been raised during the time you were buying).

The process of buying a foreclosure can be very frustrating and full of surprises. To some extent, that's just what it is. We try to minimize it, but it isn't always easy. 

You need to decide whether the numbers still make sense and you should purchase the property.If it doesn't make sense, don't do it. 
  • August 09
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The 6 months dues and calling the assoc to verify monthly dues are part of the process.
The legal and collection fees is an unknown wild card that is a surprise amount right before closing. Could be hundreds or thousands......Ask your attorney for more info. 
  • July 12 2013
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State law allows the bank to charge the new buyer (you) 6mo of the past due assessments. Your agent should have known that. You need to complain to the managing Broker of the agent.
  • July 12 2013
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You can be responsible, by law, for up to 6 months past due assessments as well as any outstanding special assessments. You can try to avoid or offset this up front by writing a closing cost credit into your initial offer, but it sounds like it may be too late now. The HOA amt discrepancy happens frequently because the listing agents have or obtain incorrect info. You can back out if you want, but weigh your options and decide if the deal you're getting is worth it. Best of luck!
  • July 11 2013
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Profile picture for Andrew Malak
Yes. Not only that, you are also responsible for LATE fees and attorney fees if they hire an attorney to collect debt. It is your duty and your agent to verify the monthly assessment. All it takes is a call to the association. Yes, there is a way to back out if these fees are too high. Also, if you pay full price they usually pay it off.
  • July 11 2013
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Yes unfortunately its true but I've also seen with a great attorney you may be able to get the bank or in this case Fannie Mae to cover a portion or all of past HOA.  I can't comment on your agent and the discrepancy regarding the monthly dues but hopefully the difference is worth it and your still hopefully getting a wonderful deal which is often the case when buying a HomePath property.  Good luck to you!
  • July 11 2013
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You might also be responsible for up to six months back dues.
  • July 11 2013
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