Welcome to Shortsalepowerhour.com. We are Kevin Kauffman and Fred Weaver, Group 4610, which is Arizona’s leading short sale team. Today is unforgettable Friday and we would like to chat regarding HOme Owners Association Fees. There is a lot of energy out there around the HOA fees. From the lender aspect and the broker aspect both are wondering why each aspect should pay. The entire time, the Home Owner Associations are making out like bandits. The reality that you have to pay $300+ dollars to even get a pay off is absurd.
We were dealing with a servicer on a file and the servicer stated that they wouldn’t recompense 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 assessment make sense. He was evidently illustrating that this conclusion was about savings over foreclosure. Yet, we run into situations where we have to fight around HOAs.
We just had a folder this previous week where the negotiator came back to tell us that Arizona is a super lean state. The funny part is that she did not say they will not pay it or can not pay. She said that she does not have to pay it. If the property goes to foreclosure, the lender does not owe those back fees. On the other hand, the lender would have an additional REO House. We are exhausted of having that discussion with lenders. Does it save over foreclosure or not. That is actually the only thing that matters.
Loss mitigation is already hard enough. So, let’s not make it any more challenging by making it a subjective procedure that is based on some upper level executive’s pleasure.
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