If you are having trouble making mortgage payments and live in community with a homeowners association (HOA), please do everything you can to keep current with payments.
HOAs can and will foreclose for unpaid dues and assessments. If you get involved in a short sale, the non-payment of HOA fees can derail a short sale, as Katerina Gasset, Florida short sale expert, points out here.
Not paying your HOA Fees is the #1 Killer of Short Sales and Deed in Lieu.
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. There are options to foreclosure.
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.
Nestor Gasset and Katerina Gasset- Realtors®, CIPS, ABR, SFR, GRI, REOSInternational Properties & Investments, IncCall us today at 561-753-0135 to get your house sold.