As short sale experts, we see many short sales go through our office. Not only do many of our agents list and close short sales regularly, but our company also provides short sale negotiation services to agents throughout California and beyond.

Often times short sale sellers in San Marcos and beyond want or need to participate in a short sale because they have a real hardship. The hardship could be job loss, illness, divorce, or a change in the mortgage interest rate. Generally, many Escondido short sale sellers have already ceased making payments on their loan(s) because they are having trouble making ends meet.

Aside from mortgage payments, there are other payments and bills associated with homeownership—electricity, trash, water, and often times Homeowner’s Association dues.

Escondido short sale sellers are often surprised to hear that they should continue to make payments to the HOA, if they can—throughout the short sale process. This is because when a lender approves a short sale, they frequently do not allow any of the proceeds from the sale to be paid to the HOA. You see, when a lender approves a short sale, the lender approves the terms and conditions of the sale. The lender approves how much will be paid for various items, including but not limited to title insurance, escrow fees, recording fees, and real estate commission.

In the state of California, the mortgage lenders generally are not approving payment to the HOA as part of the short sale. However, the HOA balance needs to be paid in order to complete the short sale. Since associations throughout California are having trouble making ends meet, we often see the associations placing liens on properties for unpaid dues. These liens have exorbitant charges for legal fees and interest. If a home in a short sale has an HOA lien and the bank will not authorize money from the proceeds to be paid to the HOA, someone else (generally the seller) will need to satisfy that debt prior to closing.

So, if you are considering selling your home as a short sale in Escondido and you live in a community with association dues (such as Rimrock Estates or Rancho Verde), please keep in mind that it is best to pay the association dues if at all possible.

 

 

CDPE, HAFA Certified
Broker/Realtor® ● DRE #01324959
Broadpoint Properties, Inc
Short Sale Expeditor®

If you enjoyed this post, why not connect with me in these other communities?

    

 

 

IMPORTANT NOTICE

Broadpoint Properties, Inc is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.