I listed a Fannie Mae condo on 2/2/2010. I'm a Florida agent. Fl allows HOA unpaid condo fees to be repaid back 6 months from date of foreclosure. This HOA condo docs state the same thing. We have a buyer and closing is this month, however HOA atty states because the bank foreclosed and assigned to Fannie Mae, the seller is not allowed the safe harbor provision and needs to repay all back fees, which is over 2 years worth rather than 6 mos. Has anyone else run into this and did you have a solution? I am also bringing this to your attention so you are aware of this. The condo docs state 6 months. Logically it seems the most the HOA could collect is 12 mos then....6 mos from bank foreclosure and 6 mos when it was "immediately" assigned. Is that legally logical ? I'd be interested in hearing if anyone else has experience with this so that I could offer some solutions to the seller and even the title company. The title company stated this is a new loophole some HOA's are using with Fannie,Freddie, VA, FHA foreclosed loans. Another attorney had written in a blog that in order to qualify for Fannie, Freddie, VA, FHA loans the condo complex (property) is only allowed to charge back 6 mos. It seems that theory is violated if the HOA then penalizes the Fannie, VA, FHA etc assignment after the foreclosure.
Angela, hi, I am in Tampa Bay. There are many fine points to this rule, especially in SFD HOA's. There are certain requirement that bank must fulfill in order to qualify for the reduced time frame. This was explained to me by a para lagal at one time since my manager refused to pay the bill. What I do is this, I get the bill from the lawyer, and send it up to the REO manager. Let them go to their attorneys and sort it out. Best we be the messanger on this, and let the laywers hash out the fine points.
I recently ran into this situation on one of my listings. The Condo Association was collecting the six month assessment fees, late fees, attorney fees and litigation fees. So, instead of $1,400.00 in fees charged to the Buyer, it totalled over $ 3,100.00 Illinois Law provides for up to 6 months prior to the foreclosure date to be paid by the buyer. But the other fees seemed excessive.
I do not have Fannie or Freddie but I am running into this lately with foreclosed properties. The HOA is holding out for more money and often is winning because they can hold up the closing for quite awhile. The banks I deal with are paying more just to get it closed and off their books.
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I do not have Fannie or Freddie but I am running into this lately with foreclosed properties. The HOA is holding out for more money and often is winning because they can hold up the closing for quite awhile. The banks I deal with are paying more just to get it closed and off their books.