Short Sales with HOA

WARNING - if you have a Homeowners Association (HOA) keep paying.

The Short Sale Lenders do not cover delinquent HOA. HOA is considered an extra ~ a "community fee". They will cover the transfer fees, the renewal fees or anything else as long as you are current. If you are not current, some lenders will not pay those fees either. It will rest on the shoulders of the homeowner or the buyer, and frankly most buyers will move on to the next house and the end result will be a foreclosure.

So here is a suggestion. Pay your HOA and not your Property Taxes. In April send 8 months worth of HOA to your lender and keep the rest, then in November pay the remaining 4 months if it didn't sell. I'm sure you are thinking I am crazy by telling you this information but it is a matter of wanting your short sale to be successful or not. If it comes down to HOA or property taxes - you know what my choice is.

Why is this you may ask, well Property Taxes are associated with your home and are mandatory payments by Government. HOA is considered an extra ~ a "community fee", and is not governed by the Government. So when your short sale gets submitted to the lender and if you have a good agent that knows what they are doing, they will get the short sale accepted and closed.

If you have any questions regarding Short Sales give us a call or send me an email. I'll be happy to help. 916-663-6623 or Lisa@ArdaRealty.com.