Don’t Lie About Your HOA Fees- Your Agent, Bank and Title Company Will Find Out
When you are selling your home in Florida as a short sale you still have to pass clear title to your new buyer.
The title company is going to do a search for any defects on your title such as liens from your HOA ( Homeowners Association) or Condo Association.
The title company also has to order an “estoppel letter” from your HOA. This is a document that contains the verified information from your HOA about what you owe and whether you are current or not. It will contain the amount of money that is going to have to paid to the HOA before they will issue a clearance.
When you list your property with a Wellington short sale agent come clean with us on what you owe and to whom you owe it to. If you say that you are current on all of your HOA fees we are passing that information along to the title company who is then going to need to verify if this is true. So why lie? It won’t help you- in fact, in many instances it can come back to hurt you.
In the state of Florida your mortgage servicers are only required to pay up to a certain amount of your delinquent HOA fees. So that leaves the rest on who?
Telling the buyers at the last minute that they are going to have to pay your HOA fees is a great way to kill your short sale.
You are the one that is responsible for your HOA fees. Make sure that you are at least being honest in what you owe and for how long you have not been making your HOA fees.
Remember also, that in the state of Florida, the HOA can foreclose on your house WAY before the bank does!
Contact Nestor Gasset and Katerina Gasset at 561-753-0135 for a confidential phone interview about your option to do a Florida short sale.
Not paying your HOA Fees is the #1 Killer of Short Sales and Deed in Lieus.
Many homeowners who are behind in their mortgage payments are also behind in their HOA fees. When we take on a short sale listing it is very important for the seller to understand the ramifications of NOT paying HOA fees.
In the state of Florida the HOA can foreclose on you, they can lock you out of the pool and clubhouse, they can evict you after the foreclose on you and rent your condo or property out, they can deny you access through the gate.
And the HOA can do this very fast. Many people here are being told by their agents, by their attorneys and by their friends and family members that their HOA can not foreclose because the first bank, the main lien holder, is in first position and if your bank has not foreclosed the HOA can’t. Well, that is NOT TRUE.
The HOA can foreclose on you subject to the first lien holder. They don’t need your bank to foreclose on you first or at all.
If you are planning on doing a short sale then you should do all you can to keep up with your HOA payments. If you are far behind and the HOA has their legal council contacting you- make some arrangements to pay towards the part you are behind.
If your HOA fees get too high, your lender is not going to approve those to be paid out of the net loss they are getting at closing.
If you want to do a deed in lieu you have to be current with your HOA fees or you have to negotiate with your lender to pay a portion of those fees for you because you must give clean title in a deed in lieu.
Attorneys tell us that for deed in lieu- the number one killer is the homeowner being behind in their HOA payments.
Most every attorney we know that understands the short sale process advises their clients that even if they are not making their mortgage payments they should keep current with their HOA payments.
We are not attorneys and we are not giving you legal advice. Consult an attorney if you are behind in your HOA payments.
If you or someone you know is behind in their payments consider a Florida short sale.Contact Nestor or Katerina Gasset at 561-753-0135 today for your private confidential interview to go over your short sale options.