I have a short sale transaction that has received approval from the lender (BofA). The property has an HOA, and they are charging very high fees for their demand (approx $600). That fee does not cover the possible missed payments, late fees, and penalties. Obviously, the home owner is unable to pay this fee, but it is necessary in order to move forward and close the transaction. As of now, the buyer is still on board, and obtaining financing (FHA loan). However, if I cover the fee, there is a chance that the financing will not go through, and I'm out $600 bucks.
1. I could ask the lender to cover the upfornt fee.
2. I could have the buyer pay the fee out of their deposit
3. I pay the fee myself
Has anyone had a similar situation? How should this be handled?