Should You Pay Your HOA Fees If You Are Selling Your Clermont House
If you’ve made the decision to sell your house either as Standard or as a Short Sale, it remains your responsibility to pay homeowners association fees until the house is no longer yours. This holds true even if you are no longer living in the house. Delinquent homeowner association fees not only stop the sale of the house but will have a negative impact on your credit. You should absolutely pay your HOA Fees if you are selling your Clermont house to avoid additional fees and judgements against you as the homeowner.
If you’re late on your HOA fees, contact them- They will most likely work with you on unpaid association fees. Don’t ignore their letters and don’t assume they will give up! Homeowner Associations may go as far as to place a lien on your house which will prevent you from transferring title to the new owner.
Don’t assume the lender will pay for the delinquent HOA fees- Most lenders in Short Sale transactions, will not pay for the late HOA fees. Even if the house goes back to the bank(foreclosure), you as the homeowner will still be responsible for paying for the delinquent HOA fees, late payments, attorney fees, court fees.
When selling your Clermont house, it is best to consult a local Realtor who has knowledge in Short Sales to guide you through the process. It is best to handle delinquent HOA fees at the time of listing to eliminate unnecessary burden at the end.
Keep in mind, NO Realtor can and should offer you legal advice on Short Sales or otherwise. I would highly recommend contacting a Real Estate Attorney and a Tax Advisor for legal and tax questions.
If you have questions on the Short Sale process of your Clermont house, give me a call at 407-929-1852.
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!
Beth, Very good point about HOA fees. I dont think sellers realize that delinquent HOA fees will create a lien on their property. They need to keep them current to avoid hassles later on.
Mar 12, 2013 02:09 AM
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL
Hi Belinda, unpaid HOA fees create quite a mess when selling a house, they're really not that easy to work with once a lien is placed on the property.
Mar 12, 2013 02:20 AM
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!
The sellers need to keep current on everything, includiing utilities, no?
Mar 12, 2013 03:45 AM
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL
OMG...utilities is another post all by itself!! Unpaid utility bills hasn't stopped a sale for me YET but will haunt those homeowners down and they won't be able to get utilities turned on at an other home until they're current not to mention additional deposit fees companies will require.
Mar 12, 2013 03:57 AM
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate
Hi Beth - Excellent advice. In Colorado, HOA's have a super-lien position and can really interefere with a transaction and, at worst, force a foreclosure. If a seller is serious about selling, they need to keep current with their dues.
Mar 12, 2013 04:12 AM
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker
Beth~ (you're so right) HOA's can be so tricky, your explanation is awesome. BTW: I am sure that HOA's involved in a lawsuit is another blog, as well. 8~)
Mar 12, 2013 04:13 AM
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL
Hello Jon, I could only speak for the ones I've had to deal with and they don't play nice!!! I like to see who enforces statues when HOA's violate them as well. Of course none of this is an excuse for homeowners not to pay their HOA fees as the consequences could be brutal when trying to sell a house or otherwise.
I've heard of those lawsuits as well..we shall see what the outcome will be.
Mar 12, 2013 04:21 AM
TD Bank - Freehold, NJ
1-4 FAMILY HOME LOAN SPECIALIST
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL
Tony, isn't that the truth? Ones in power have nothing to lose but the distressed homeowner does!
Mar 12, 2013 05:00 AM
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services
Beth, This is great advice. HOA fees are a personal obligation and many homeowners do not understand that. It blows my mind that people think a short sale lender will pay unpaid HOA fees.
Mar 12, 2013 08:50 AM
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730
Beth, I was able to negotiate with an HOA on a short sale because in TN they get nothing if it goes to foreclosure sale.
Mar 12, 2013 11:33 AM
RLAH@properties - Washington, DC
Home in the Capital
Beth, a lot of sellers do get a little bit sloppy with their HOA fees, especially once they have a ratified offer. Bad idea!
Mar 12, 2013 11:36 AM
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL
Dick, I've seen HOA's foreclose on properties in FL as well, they don't play!!
Kathleen, some even get upset they have to pay the HOA fees or try to get the buyer to pay their delinquent HOA fees. I've had 2 now who used their money from HAFA to pay the fees. Not all lenders approve it though.
Debbie, Some companies are better than others, that's great for your clients!
Hi Patricia, indeed, it is a bad idea! they don't realize they will end up paying all the other fees on top of their back dues.
Mar 12, 2013 12:01 PM
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL
Some people seem to think if they don't want to pay them, they don't have too, Beth. Good information for sellers.
Mar 12, 2013 11:55 PM
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource
Beth, whenever a client of mine makes an offer on a home I always place language in the offer/contract requesting that all HOA dues are to be made current by the seller...eliminates any surprises later.
Mar 13, 2013 12:10 AM
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL
Toni, this is a challenge especially with Short Sale sellers, they "assume" the lender will pay for their delinquent HOA fees.
Nick, I have one right now, I have the same verbiage, LA agent is under the impression "Seller" is the lender, not the homeowner!
Mar 13, 2013 01:05 AM
Keller Williams Realty Mountain Partners - Tryon, NC
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL
Rainmaker
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Beth Atalay
Cam Realty of Clermont FL
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