HOA Negotiations Are Getting Tougher, Make Sure You’ve Reviewed the Updated Training

We recently updated and expanded the HOA lien and negotiation material in the Certified Short Sale Experts course.

And there’s a reason we did it.

Association collections are becoming an increasingly important part of the distressed-property business.

Many HOAs and condominium associations are experiencing their own financial pressures, including rising insurance costs, maintenance expenses, reserve requirements and special assessments.

As a result, some associations and their collection attorneys are becoming much more aggressive in recovering unpaid amounts.

What may have started as a relatively small amount of unpaid dues can grow substantially after late charges, interest, legal fees and collection expenses are added to a file.

In certain states, association lien-priority laws can make these situations especially complicated.

For a short-sale agent, that means the HOA payoff may become one of the biggest obstacles to getting a transaction closed.

And don’t assume the first payoff demand is necessarily the final amount the association will accept.

You need to understand who has authority to negotiate, whether the claimed amounts are valid, what the association’s lien rights are and how the mortgage investor’s approval requirements affect the settlement.

Sometimes you’ll need to work with association management, the board, collection attorneys, the title company and the servicer to find a solution.

A small HOA lien can become a very large closing problem if you don’t address it early.

If you haven’t reviewed our updated HOA training, please do so.

We’re going to continue expanding this material as the industry continues to change.