HOA TAKES ON ANOTHER MEANING IN REAL ESTATE WHEN DOING SHORT SALES
I just closed on a short sale today. Yes, it took all of us time and patience to close this deal. Wow, real estate is a team sport on this deal. We had to deal with the HOA in this transaction. What is a HOA? HOA stands for HOME OWNERS ASSOCIATION. What does an HOA do? That is a great question. Their number one job is to govern a residential community. Many of the board members volunteer their time. The HOA enforces the standards all agreed upon within a community. It is a great experience for anyone to sit on a HOA board for a term. You will learn a great deal.
Let's look at the following fees that were on the final approved HUD
- Advance Assessments $155
- Late fee to HOA $15
- Outstanding Assessment to HOA $232
- Reserve Fee to HOA $155
- Resale Cancel Fee to Property Management $75
- Statement fee to Property Management $50
- Transfer fee to Property Management $150
- Resale Disclosure Fee to Property Management $150
This added another $922.00 of closing costs to the entire transaction. This is with me negotiating with them to lower their fees. They know the transaction will not close until they are paid in full. Yes, many HOAs and property management companies were furt financially during the foreclosure boom. It seems they are finding other ways to make it up.
We are becoming a fee society in all industries.
I have a new one HOA-HOLD ON AMERICA
Is this same practice happening in your local real estate market? Love to hear from you on this one.
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HOA is the most important of the fees that must be paid.
HOA hires the property management company so both are vital to pay off
I heard they can be tough to deal with when collecting fees
And the HOA can hold a deal hostage until paid - tough times. But over $900? I'm glad it did not bust your deal.
Just another obstacle in the game of real estate to close deals
My parents are not big supporters of HOAs--personal experience
It seems to me the HOAs are getting out of control with their fees