Condo owner needs advise

By
Real Estate Broker/Owner with Independent Real Estate Broker DRE#00972295

 

Condo owner needs advise: 

I own a condo in Downey, CA which I purchased in 2003 and in 2006, I refinanced it and cash out to buy the home I now live in.  I’ve been renting out this condo ever since and up until a few months ago, I rent it out.  The rent I received didn’t  cover all my cost (I was paying the difference out of my pocket) and I was struggling to make the payment but I was handling it.  When my business came to a complete stop and the renters stopped paying the rent, I stopped making the all payments including the condo association dues. I owe my association $4,800 in unpaid fees and they want to put a lien on the property.  I am thinking of short selling this condo but I’m concern about the unpaid  association fees.   I have so many questions:  Can they also put a lien on my primary residence? Do I have to make these back payments to the association if I short sell? Can I rent out the condo, and collect rent even though I am not paying my mortgage?  At least I could rent it out to pay for the association dues, insurance and the property taxes.

 

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First question:  

 

Only that the condo would be subjected to liens for non-payment of association dues, but you should check your CC&Rs.  Is there a provision that would allow them to place a lien on your primary residence or any other properties you own?  Maybe you used your other properties as collateral.  You never know what can be hidden in those CC&Rs and if you are like most typical Condo Buyers: you probably didn’t read your CC&Rs.  That’s why I tell my condo buyers to be very careful when buying a condo....read your CC&Rs.

 

Second question:

 

As far as paying the back payments, if you are going to short sell your condo the association dues will be paid from the proceeds of the sale and all back taxes as well.  Of course, you  have to keep in mind that your lender will have to approve all fees that are paid out.  They might ask you for some kind of contribution if they feel that you have enough assets or income to make a “seller’s contribution!”

 

Third question:

 

Renting out your condo while you are in pre-foreclose stages is not fair to the new renter and it could be consider as rent skimming which is illegal.  I guess if you were to rent it out just enough to cover the association fees and you are upfront with the tenant that would be something between you and the new tenant.  But I can’t image anyone renting out a place knowing that they will have to be leaving soon.  A lease would not protect this tenant as it would be an invalid and unenforceable contract. I say that by renting it out you will be complicated your situation, in other words you will be adding fuel to the fire.  I would stay away from doing this, and just concentrate on trying to sell the condo as quickly as possible.

 

If you need help selling your condo, I am a Downey area specialist who has been in business since 1987. There are other questions that you, as short sale owner needs to know.  I would gladly personally answer all your questions and go over all the benefits and important information about short selling your condo in Downey, CA.  Please feel free to call me anytime.  I can be reached at 562-916-3237, ask for Aida Pinto. 

 

Disclaimer: This is not legal or tax or advise and this is solely for informational purposes, please consult with an attorney for legal matters or your tax accountant.  All information contained in this blog is current and careful attention to accuracies is taken but not guaranteed.  If you have already decided that a short sale is your best option, I would be more than happy to assist you in selling.  I am California Licensed Real Estate Broker, DRE #00972295, and have been in business for over 20 years in the Downey area of Los Angeles County.  I currently specialize in selling distressed properties in Los Angeles county such as:  REO, Foreclosures, and Short Sales.  Whether you have a distressed property or regular standard sale, I can help you with all your real estate needs.  I can also handle your Probate properties as well.  I am an expert in selling vacant homes owned by out-of- state owners, as well as tenant or owner occupied properties.

 

Copyrighted ® by Aida Pinto September 18, 2011.  

 

Posted by

Aida Pinto (562) 884-6196
Los Angeles County
Real Estate Broker



The Real Estate Maven : https://www.facebook.com/aRealEstateMaven?ref=hl

 

Short Sale, Probate and standard real estate expert.

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