In the case of a short sale. The bank has said they...

Submitted by rel8y4u from CA - 12/31/2008 - 2:06pm

In the case of a short sale. The bank has said they will not pay the delinquent HOA dues. Is the buyer required to pay them in order to close escrow? We have been told we have to pay them. I don't believe that is correct.

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Submitted by Sean - 01/04/2009 - 9:34pm

In a short sale there is no foreclosure to wipe them out, so someone will have to pay them. There is no law regarding who pays what - though certainly the "seller" would typically pay HOA dues on a pro-rata basis through close of escrow. But if neither the prior owner or the lender will pay them (collectively "the seller", then that leaves the buyer.

Submitted by dan - 11/13/2009 - 9:35am

I smell hard ball. Time to get your bat.

The lender is trying to save money and HOA dues are an angle for them. There are options for listing agent, seller, buyers agent, buyer...split the cost, have one person pay it or try to work the lender.

When in doubt, hard ball rules say that you tell them the buyer is walking unless they pay X price, the agents are willing to come up with Y money out of commissions(if that's what you choose) and lender will pay HOA if foreclosure happens.

I just closed short sale in SSF, between HOA lates and an assessment added to the condo...the lender had to pay 24,700. The lender told me..." I hate HOA's...we always have to pay them...they don't work with us very much ever...man I hate HOA's"...play hard ball.

Dan Rogers
Reliance Realty Group
408-821-2250

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