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Old 03-02-2019, 06:15 AM
Status: "Waiting for Round Two of Polar Vortex" (set 25 days ago)
 
75 posts, read 49,762 times
Reputation: 77

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So, after falling behind on HOA dues, by 10 months, i was relived to pay the full amount yesterday ($2000)!

Now i am owing on the Special Assessment for a Deck project AND payback of "Reserve Funds", and i don't have the full amount. (10k).

Consequently, i am reviewing my budget ahead of the HOA meeting this week in order to present an acceptable plan to the board members, in an effort to put off a possible Lien and foreclosure.

Question:

Assuming the HOA agrees to my proposed payoff arrangements, countering etc.. is it possible that with HOA approval, i can put the Condo up For Sale, and pay off the account at closing? In other words, it seems to me, that in this scenario, the closing agent will deduct the fees that i owe from the sales proceeds and send them directly to the HOA.

Yes/No?

Last edited by dental257; 03-02-2019 at 06:56 AM.. Reason: left out a word..didn't sound proper..
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Old 03-02-2019, 06:35 AM
 
20,756 posts, read 29,344,867 times
Reputation: 18872
It shouldn't be an issue, but why the extreme measure if able to reach a resolution to pay back over time?
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Old 03-02-2019, 06:36 AM
 
Location: Lakewood Ranch, FL
5,226 posts, read 7,904,264 times
Reputation: 6173
That is probably what will happen whether you initiate it or not. In my state (Florida) and I assume elsewhere, the attorney or closing agent must obtain an estoppel letter from all of the associations involved and that letter states that X amount of money is owed on the property account as of the closing date. The amount is deducted from whatever amount you would receive from the sale, just like prorated taxes, commissions, etc.
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Old 03-02-2019, 06:55 AM
Status: "Waiting for Round Two of Polar Vortex" (set 25 days ago)
 
75 posts, read 49,762 times
Reputation: 77
Thank you to all respondents.

I'm just trying to plan ahead..You know how it is.. Worried that with owing so much, that my proposal will not be acceptable. It's $10K!! I can't meet that at this time, and unsure of what they WILL accept or counter..
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Old 03-02-2019, 07:29 AM
 
Location: Lakewood Ranch, FL
5,226 posts, read 7,904,264 times
Reputation: 6173
I was on the board of my condo for many years including during the days of the housing meltdown. We had several owners that were delinquent. In some cases, where the owner was communicative, we worked out payment plans. I remember that some stuck to the plan and others didn’t. The ones that didn’t and the ones who just disappeared were turned over to our attorney for collection and, eventually, to collection agents. In a few cases, we foreclosed on the properties and rented them until the first mortgage holder eventually foreclosed. Our goal was always to mitigate the losses caused by these individuals so the rest of the members of the association weren’t as burdened by carrying the weight.

I’m sure that every board has its own personality depending on the personalities of the members but I have to believe that a sincere, workable, plan that would get you caught up in a reasonable timeframe would be met with a positive reaction, especially since you’ve already caught up on the other debt. You might also look into a home equity/debt consolidation loan. If you really think you can get caught up, ask them to freeze any interest or other penalty charges. You might also ask them to remove or reduce any current penalties or interest charges. If they lean toward foreclosure, remind them that it will cost them attorney fees and their ownership will still be subject to the mortgage, if there is one.
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Old 03-02-2019, 12:16 PM
 
Location: Florida -
8,639 posts, read 10,452,889 times
Reputation: 16239
Quote:
Originally Posted by dental257 View Post
So, after falling behind on HOA dues, by 10 months, i was relived to pay the full amount yesterday ($2000)!

Now i am owing on the Special Assessment for a Deck project AND payback of "Reserve Funds", and i don't have the full amount. (10k).

Consequently, i am reviewing my budget ahead of the HOA meeting this week in order to present an acceptable plan to the board members, in an effort to put off a possible Lien and foreclosure.

Question:

Assuming the HOA agrees to my proposed payoff arrangements, countering etc.. is it possible that with HOA approval, i can put the Condo up For Sale, and pay off the account at closing? In other words, it seems to me, that in this scenario, the closing agent will deduct the fees that i owe from the sales proceeds and send them directly to the HOA.

Yes/No?
$200 per month isn't much, yet, the fact that you were behind 10-months, suggests you have probably already used-up a lot of good will with the HOA board. Still, do they already have a plan in place for those who are not able to pay $10K as a lump sum? -- You could also consider a home-equity or personal loan (but, I suspect your credit isn't that great either). Otherwise, make an offer in writing (not at the HOA meeting) and be prepared to submit it after investigating the alternative payment plans at the meeting.

Even if they place a lien on your property, that only means you cannot sell the property without paying off the lien - so the question of whether you can sell the condo to pay the assessment/lien is pretty much self-explanatory (Yes). It might, however, be considerably easier to sell without a lien, plus you are still going to need a place to live.
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Old 03-02-2019, 03:03 PM
 
Location: Minnesota
1,856 posts, read 717,633 times
Reputation: 3293
Finding someway to get caught up, stay caught up and working in the additional fees would be my choice. But it would be what ever works for you. If your budget is that tight can you have a roommate for a year maybe two until caught up.

My parents belong to a association and when they had a big project the association was able to get a bank loan for 3, maybe it was 5 years. So there is some interest in that loan. Maybe the HOA has a loan too. About half of my parents were able to pay their portion of the project upfront some were not.
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Old 03-02-2019, 05:15 PM
 
12,834 posts, read 6,121,458 times
Reputation: 12136
Quote:
Originally Posted by jghorton View Post
$200 per month isn't much, yet, the fact that you were behind 10-months, suggests you have probably already used-up a lot of good will with the HOA board. Still, do they already have a plan in place for those who are not able to pay $10K as a lump sum? -- You could also consider a home-equity or personal loan (but, I suspect your credit isn't that great either). Otherwise, make an offer in writing (not at the HOA meeting) and be prepared to submit it after investigating the alternative payment plans at the meeting.

Even if they place a lien on your property, that only means you cannot sell the property without paying off the lien - so the question of whether you can sell the condo to pay the assessment/lien is pretty much self-explanatory (Yes). It might, however, be considerably easier to sell without a lien, plus you are still going to need a place to live.
They can foreclose on that lien.
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Old 03-02-2019, 05:19 PM
 
1,149 posts, read 356,465 times
Reputation: 2978
My HOA puts a "continuing lien" on the house, with penalties added annually at a rate specified in the HOA documents. They don't force a sale but when the place IS sold, the lien will get paid, provided there's enough equity left over after paying off any mortgages and closing costs. (Not sure if we're SOL after that or can go after the homeowner for the shortfall.) I'd think it would be a giant hassle to foreclose and force a sale, and the HOA would be better off attaching a lien to your property. (Caution: I am not a lawyer and the laws may be different in your state.)
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Old 03-02-2019, 06:04 PM
 
Location: North State (California)
32,576 posts, read 2,536,344 times
Reputation: 11072
How much do you own on the mortgage & where will you live if you sell up? Try & work out a payment plan with them.
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