What is an HOA estoppel?
What is an HOA estoppel?
An Estoppel letter from a homeowners association is a document placed into file when a home or condominium is in escrow. The document states the seller’s annual fees for the homeowners association and indicates if the seller has paid in full or has fees due at the time of sale.
How does a short sale affect your Hoa?
A short sale does not extinguish the HOA balance or the seller’s responsibility for paying it. A seller remains responsible for his homeowner’s association dues, even when he can’t afford his mortgage. The HOA can complicate and even halt a short sale, as the association can legally attempt to recoup unpaid dues.
When is a seller responsible for HOA dues?
Given the potential pitfalls of unpaid HOA dues, real estate agents and professionals in the short-sale field typically recommend that sellers remain current on their HOA dues until the short sale closes. A seller remains responsible for his homeowner’s association dues, even when he can’t afford his mortgage.
How can a seller avoid a Hoa lien?
The seller can avoid an HOA lien on his property, foreclosure by the association or a personal judgment against him after the sale by keeping his payments current in a short sale. A seller must appeal to his mortgage lender to accept a loss in a short sale.
When is a short sale of a home authorized?
Simply put, a short sale may be authorized by the mortgage lender when the current value of a home is lower than the outstanding balance on the mortgage.
A short sale does not extinguish the HOA balance or the seller’s responsibility for paying it. A seller remains responsible for his homeowner’s association dues, even when he can’t afford his mortgage. The HOA can complicate and even halt a short sale, as the association can legally attempt to recoup unpaid dues.
What do you need to know about selling HOA property?
Likewise, the seller needs assurance that a sale is final at some juncture so that the proceeds of the sale may be allocated as s/he sees fit. Homeowners have also heard about the different fees that are associated with an HOA property conveyance.
The seller can avoid an HOA lien on his property, foreclosure by the association or a personal judgment against him after the sale by keeping his payments current in a short sale. A seller must appeal to his mortgage lender to accept a loss in a short sale.
What happens if Seller Cant pay HOA dues?
Most lenders on the seller’s side won’t pay HOA dues when a property is in a short sale position. Asset managers can be firm on this point and some will watch as a house goes into foreclosure because of the seller’s inability to pay outstanding HOA fees.