Short Sale / HOA Dues Question

[Irish Gal]

Hi folks,

Hope everyone here trying to do a short sale is having some luck out there . Does anyone know if it's possible to also negotiate delinquent HOA dues as part of the settlement with the bank ? I know the best possible scenario is to stay current w/ the dues until a settlement or foreclosure occurs, as there is personal liability for the homeowner. But, in the event that becomes an issue, has anyone here successfully attempted such a negotiation ? If so, please share. Thanks !

[Irish Gal]

Originally Posted by Irish Gal

Hi folks,

Hope everyone here trying to do a short sale is having some luck out there . Does anyone know if it's possible to also negotiate delinquent HOA dues as part of the settlement with the bank ? I know the best possible scenario is to stay current w/ the dues until a settlement or foreclosure occurs, as there is personal liability for the homeowner. But, in the event that becomes an issue, has anyone here successfully attempted such a negotiation ? If so, please share. Thanks !

Hey folks,

I also posted the above question to the Professor (Foreclosure thread) and am sharing his response here for anyone else who wanted to know:


Not only is it possible, but it is something I would encourage attempting. Remember the reason you are going the short sale route is that you can no longer afford the payments. The sale cannot close without the demand of the HOA being satisfied. That demand will be that HOA dues are current. I'd just ignore the issue until the day before closing. Likely it will simply be included in the list of charges and expenses that will be deducted from the total proceeds available at closing which will go to the lender. If asked to chip it in at closing, point to your empty wallet. It is extremely unlikely the lender will say at that point they won't go through with the deal unless the money to pay delinquent HOA dues comes out of your pockets.

Daniel