Homeowners Fighting Homeowners

By
Real Estate Agent with Century 21 Real Estate Center Everett, WA

Debbie Atwood Is Making A Splash In Snohomish County!

 

 

I read an article today about Homeowners fighting Homeowner Associations because of Homeowner Dues not being paid. It is an interesting article.  

In my area I have seen many Associations place liens on a property which have held up the sale of a property but I have not seen the HOA actually foreclose on the property as this article is talking about.

Although, I know it is possible for them to do this and is probably happening here locally but definitely not to the extent it is apparently happening in the areas noted in this article.  

I have received phone calls from Homeowner Associations asking me how they could purchase a Condo Unit that was going to Auction.  

I have also seen MANY properties for sale that are bank owned and have a very large assessment due either at the close of the sale or added to the HOA dues among all homeowners in a complex or neighborhood.

I have seen Condo’s for sale that are owned by a bank that have a disclosure noting there is an assessment due at closing in the amount of $30,000.00!   Under the remarks in the listing it states the purchase price does not reflect the HOA assessment due.  In other words - add another $30k to this asking price!  Debbie Atwood Is Making A Splash In Snohomish County!

I have also run across bank owned units where the bank did not disclose a large assessment due.  

When working with Sellers that are in a HOA and are attempting a short sale (which is where this problem comes up a lot) we discuss the problem of the Seller not keeping their Homeowner Association Dues  current and that the Seller runs a higher risk of the Association holding up the short sale until the Association is paid what is owed to them by the Seller or Buyer.   

When working with Buyers that are looking at a property with a HOA we discuss the importance of checking into the HOA and it’s financial stability.  We can do this by checking for liens on the property and reading through the resale certificate package.  Debbie Atwood Is Making A Splash In Snohomish County!

The article here is a good one for Sellers and Buyers to take note of.  Due diligence is a must anytime you are buying a property or selling a property and in today’s market there is even more reason to be a responsible Buyer and/or Seller. 

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Tags:
hoa
homeowner associations
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homeowner dues
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Rainmaker
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Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Debbie, this happens in our area.  But, we ask the title company to check with the HOA to see what dues are past due, and it generally isn't an issue.  However, they do need to be paid prior to or at closing to release any interest in the property. 

Jul 11, 2011 03:17 PM #1
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Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
BA, Integrity Real Estate Services -IDABEL OK

Debbie, Things are just a lot more complicated than they used to be.  There are lots of new rules and they're being changed every day.  It truly is very important that buyers and seller practice due diligence.

Jul 11, 2011 03:19 PM #2
Rainer
85,698
Debbie Atwood
Century 21 Real Estate Center Everett, WA - Everett, WA
Real Estate Broker

Hi Don - Yes, our title/escrow will do this for us too.  I haven't had any big issues happen like what this article is talking about but the West Coast is generally a few years behind the East Coast!  LOL  Maybe it is coming..... 

Judi - You got that right on the mark!  Real Estate is an ever changing animal these days.  :)

Jul 11, 2011 03:24 PM #3
Rainmaker
977,734
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

In today's economy anything can happen. Gotta read that fine print.

Jul 11, 2011 03:37 PM #4
Rainer
85,698
Debbie Atwood
Century 21 Real Estate Center Everett, WA - Everett, WA
Real Estate Broker

Will - Completely agree with you on that one!  :)  Thanks for checking it out!

Jul 11, 2011 03:41 PM #5
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Andrea Swiedler
Coldwell Banker Residential Brokerage - New Milford, CT
Realtor, Southern Litchfield County CT

Debbie, it is very important those HOA dues are kept up. You are so right. Great information, and you are featured in..

Bananatude!

Bananatude

Jul 12, 2011 12:42 AM #6
Rainer
85,698
Debbie Atwood
Century 21 Real Estate Center Everett, WA - Everett, WA
Real Estate Broker

Andrea - Thank you for stopping by and checking it out.  :)

Jul 12, 2011 03:25 AM #7
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Rainer
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Debbie Atwood

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