Buying a forclosed property in Chandler , HOA charges ? (short sale, real estate)

[phoenix_new]

I am buying a foreclosed property, according to contract, if there are any pending HOA charges before bank acquired the property, then i will be responsible for those charges , Is it something normal in a contract ? How do i know whats the pending amount ?

[Skywayy2001]

Does it matter much? If you don't like the terms, the bank will just go to the next person in line to sell the house..they don't care about you.

[observer53]

To get the amount, I would think you can ask the bank, contact the HOA, or see if the HOA put a lien on the house. If you really like the house, does it matter whether it's "normal" or not?

[mjd2k]

Thats not how I understood it. I was/am looking to buy at auction and my auction guy told me those debts were wiped clean. Similiarly if you are buying from the bank through a mls type transaction, my RE agent told me the bank was responsible for the charges.

Will be interested to read what others say. It may be important as back hoa fees could be thousands and thousands of $.

[observer53]

Originally Posted by mjd2k

Will be interested to read what others say. It may be important as back hoa fees could be thousands and thousands of $.

True, whether it is something to worry about would depend a great deal on what the amount is. To be sure of their rights and obligations in this matter, the OP should check with a good real estate lawyer.

[unit731]

Slightly off topic but related in a sense.

I made an offer on a home that was a short sale. It took about 3+ months to get an answer. When the answer came, my offer was accepted BUT I or someone had to pay all the fees and such between the day I made the offer and the day of acceptance of offer. And it was not chump change. I walked.

[Zippyman]

Originally Posted by phoenix_new

I am buying a foreclosed property, according to contract, if there are any pending HOA charges before bank acquired the property, then i will be responsible for those charges , Is it something normal in a contract ? How do i know whats the pending amount ?

If the property truly was foreclosed, (and not a short sale) they have no legal right to collect them against a new owner. They might still ask, they might try to refuse to provide the docs you need for closing.. (some in AZ have tried that).

Things like "pending violations" can show up in the docs before closing - sometimes if you've got a weedy yard they'll start issuing violations as soon as they find out there's a new owner...

Definitely call the HOA, or the managment company & ask what's going on with the property - If you've got an accepted contract, they will tell you exactly what they want.

[khuntrevor]

The standard AZ RE contract offer should/will stipulate that everything is paid and up to date. There can be some pesky transfer fees though. The Title company sends a demand letter, and I think they have 10 days to respond. Same thing applies to trash/water/sewer or any other accounts that go with the property. Never assume........

[oldtrader]

Everything will be stated in the contract, and the Title Insurance Commitment. When the property is closed, any unpaid fees in the past, will be either paid, or the money will be transfered to you at closing. At time of closing, it is up to the escrow agent to take care of things.

[Captain Bill]

When buying a foreclosed home from the bank, all the HOA fees, taxes and other fees are pro-rated as of the date of close of escrow.

You are not responsible for HOA dues that may have been in arrears.