Delinquent HOA Dues and Short Sales! Let's stop these HOA companies from killing our deals!

HOA companies aren't necessarily the most caring people to work with when doing a Short Sale. Delinquent HOA dues, Upfront Fees, and Transfer Fees are things that need to be paid before closing a Short Sale. Most times, banks will not pay for the delinquent HOA dues nor will they pay for the HOA doc fees. Most of the time, however, they will pay the $100-$300 transfer fee. Most HOA companies in California are governed by the State Dept. and when the dues become delinquent, the account is transferred to a collection agency. Most companies in Northern CA transfer the account to a collection company called Allied Trustee Services, who handle the collection of the unpaid dues. On top of the dues and late fees associated with the accounts, Allied Trustee Services also charges their own fees which add on approx. $1,000-$3,000 dollars to the amount originally delinquent. This makes everything a lot more complicated and not only is it a pain to have to go back and forth when negotiating the amount to settle the dues, it is also very difficult to come to a settlement with these companies because right off the bat, they say they are unwilling to accept settlements. I believe we as CA Realtors, should start a class action suit against these HOA companies and try to get something signed into law in order to prevent these companies from adding more burden to the already distressed Short Sale properties.