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How HOA fees can affect your Arizona Short Sale - CDPE

Arizona Short Sales and HOA Assessments

 Don't forget about your monthly HOA fees during your Gilbert, Chandler, Mesa, or Tempe Short Sale

You've received the approval letter from the bank after months of waiting, and even better, the buyer still wants the property. Everything appears to be perfect, then you find out the homeowner is further behind on the HOA dues than originally disclosed, even more than the generous line item amount you put in the estimated HUD.  You also realize that Arizona law allows for a lien for past due HOA assessments.

It would seem natural that the HOA would forgive past due assessments because if it goes to foreclosure, they will receive zero, nada, zilch...... right?  You know the answer to that one!

The agent should review the breakdown of the past due assessment, understanding how much is past due assessment vs. late fees, interest, etc. With this information, it may be possible to negotiate a lower amount eliminating the punitive charges and focusing strictly on the hard dollars owed to the HOA. 

Add onto this discussion the benefit the HOA will receive by having a dues paying homeowner within 30 days instead of worrying about a property that may or may not promptly transition into a bank owned property and receive less than adequate attention from the bank maintaining the property. Worse yet, it could become part of the "shadow inventory" and significantly bring down the appearance of the neighborhood due to the prolonged vacant status that is almost certain.

If the HOA is willing to show some flexibility reducing the amount, maybe the other parties will also reciprocate and the buyers can finally move into the house they've so patiently waited for that they're probably getting at a fantastic price and the seller can move on to a more favorable financial situation.  More info on Gilbert and Chandler short sale questions.

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725 W. Elliot Rd. #111
GILBERT, AZ 85233
(480) 326-8571
www.myhomeinaz.com