UNPAID HOA FEES CAN BECOME A REAL PROBLEM!
Posted by V.K. [Mel] Melhado PA on Monday, November 3rd, 2008 at 5:22pm.
You are hearing it more and more and the problem is becoming more and more common…homeowners in condominium complexes not paying their monthly or annual association fees. These homwowners are facing foreclosure and have not been paying their mortgages, so naturally they are not paying their association fees and it creates a real set of multiple problems.
One of the problems is that the longer that ‘short sale’, pre-foreclosure or bank-owned property sits on the market for sale, the more association fees go unpaid. This means that some things that those fees are paid for are not getting done and will have an effect on the community in general. This can also creates a problem for those looking to buy in a particular community where fees are not being paid. If the potential buyers is seeking a mortgage and the lender is made aware of the fact that there are sellers not paying fees, it could cause the lender to turn down the mortgage.
There are 12 states in the country that are designated super-priority states, making any condominium association fees owed a priority lien and title will not pass unless up to six months of those unpaid fees are satisfied. If the property is bank-owned, then the bank will have to pay up to six months of association dues. One of the issues is not whether the fees will eventually be paid, but more of the lag time that a property passes from becoming a pre-foreclosure or short sale to a bank-owned sale. There is also the worry that communities will access property owners where fees have gone unpaid.
The good news is that Florida is one of the 12 super-priority states!
V.K. [Mel] Melhado PA
Fine Home Specialist
Preview Naples Group
Downing Frye Realty, Inc.
Be the first to comment on this blog entry!