I have written many times why a short sale is almost always the best solution for distressed homeowners and that it is even better for the lender when compared to a traditional foreclosure. Short sales here in Las Vegas are gaining popularity as more and more people become aware of the many advantages of using this strategy as a means to get out from under a mortgage payment that they can no longer afford. But did you know that even Community Associations can benefit from a short sale in lieu of a foreclosure?
Normally when a property here in Las Vegas goes into foreclosure the law states that there is a limit as to how much the lender is responsible for community association fees. In many states the legal limit is 1 year but there are states that hold the lender responsible for an even shorter period of time. Considering that a foreclosure can take months or sometimes years to be completed the community association is actually losing thousands or even tens of thousands of dollars in revenue.
In the case of a short sale all past due community association fees are usually paid in full at the time of closing. Even in cases where the association is only granted a portion of the past due amount a short sale allows a new owner to take occupancy and begin paying the required fees to the community association. Either way you look at it a short sale is still better for all parties involved when compared to other solutions.
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