Welcome to Shortsalepowerhour.com. We are Kevin Kauffman and Fred Weaver, Group 4610, which is Arizona’s best short sale group. Today is unforgettable Friday and we would like to chat about HOme Owners Association Fees. There is a lot of energy out there around the HOA fees. From the lender aspect and the agent aspect both are wondering why each aspect should pay. The whole time, the Home Owner Associations are making out like bandits. The fact that you have to pay $300+ dollars to even get a pay off is ridiculous.
We were dealing with a servicer on a folder and the servicer avowed that they wouldn’t pay for HOA’s. So, we wrote an email to a supervisor at Freddiemac to figure out, in general, what their rules are on Home Owner Association fees. He noted that Freddiemac will disburse six months of delinquent HOA fees. He also alluded to the fact that they would pay more than 6 months if the financials of the decision make sense. He was obviously illustrating that this choice was about savings over foreclosure. Yet, we run into positions where we have to fight around HOAs.
We recently had a file this previous week where the negotiator came back to advise us that Arizona is a super lean state. The funny part is that she didn’t say they won’t pay it or can not pay. She said that she doesn’t have to pay it. If the home goes to foreclosure, the bank does not owe those earlier fees. Nonetheless, the lender would have a new REO Property. We are tired of having that conversation with banks. Does it save over foreclosure or not. That is really the only thing that matters.
Loss mitigation is already complicated enough. So, let’s not make it any more challenging by making it a prejudiced process that is based on some upper level executive’s satisfaction.
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