Orlando Home Buyers Having to come out of pocket to settle with HOA Bullies
Homeowner Associations have gotten tougher and tougher to negotiate with over the years. It used to be that an Orlando homeowner trying to short sale their house wouldn’t have to worry about paying their delinquent HOA dues until the closing date. Not only that, but they would also settle for a fraction of what is owed to them, usually about 10% or less in most cases. Those days are long gone!
Orlando Homeowners Associations have become the bullies of the block
What we’re seeing more and more is that the HOA’s are trying to bully Orlando realtors as well as the homeowners into getting the entire amount of what is owed to them. If they don’t get their way, they take to property to foreclosure regardless of what the lender is doing. HOA’s are fed up with being put on the back burner every time and now they’re taking it personal. They are also very aware of the law, HOA’s are entitled to get one year of past dues if the lender takes the property to foreclosure. They also know that it’s much easier for them to foreclose than a bank [no proof of ownership necessary, no issue with robo-signed documents ]. A completely different animal than a bank foreclosure.
Once they get the property into their possession, they rent it out. HOA’s know that even though it costs them a couple grand to foreclose on the homeowner, they are now able to rent rent the property out and recoup some of the loss. Many times they are able to make thousands of dollars just because the lenders take so long to foreclose.
Orlando Buyers are Having to Come out of Pocket to Pay Delinquent HOA dues
I personally think it’s ridiculous that an HOA would foreclose on a homeowner because of a few thousand dollars in past dues. Unfortunately, there is nothing that can be done about it, especially when they’ve already hired an attorney to handle all negotiations. I can tell you there’s nothing more frustrating than having an Orlando short sale 90% complete and the only thing holding up the deal is settling with the HOA. All your negotiating with the lenders is done, they’ve both given you payoff letters, and they’ve also given you 30 days to close. The only thing left to due is get the HOA to give you a discounted payoff letter and you’re golden.
The problem is that they want either the entire amount or an amount that is very close to full payoff! Unfortunately, if they don’t budge, then either you figure out a way to get them their money or the deal falls through. As an experienced Orlando realtor I will take a cut on my commission just so the deal will go through. Most of the time however, this isn’t enough for them. Sellers usually can’t afford to come up with any money, and the only ones left that can make the deal happen are the new buyers. Even though that debt has nothing to do with them at all, we have to make them aware that if they don’t pay it, they don’t get the house.
Latest posts by Jenny Zamora (see all)
- FHA’s Back To Work Program Giving 2nd Chances - December 4, 2013
- Orlando Foreclosure Discounts Shrinking - December 2, 2013
- Are Florida Real Estate Prices Set to Plummet with the Onset of Global Warming? - November 27, 2013