{"id":372,"date":"2014-01-12T15:20:58","date_gmt":"2014-01-12T19:20:58","guid":{"rendered":"http:\/\/www.realestatejunkie.com\/blog\/?p=372"},"modified":"2014-01-12T15:20:58","modified_gmt":"2014-01-12T19:20:58","slug":"homeowner-associations-increase-short-sale-aggravations","status":"publish","type":"post","link":"https:\/\/www.realestatejunkie.com\/blog\/homeowner-associations-increase-short-sale-aggravations\/","title":{"rendered":"Homeowner Associations Increase Short Sale Aggravations!"},"content":{"rendered":"

\"p_040\"<\/a>When working with a Seller on purchasing a short sale it is very important to know the terms and conditions that the new buyer must uphold with the Homeowners Associations.\u00a0 Recently, we started working on a short sale wherein the Seller owed the Homeowner Association a fee of $457.00 per month and another Homeowner Association issue wherein they would only allow the Buyer to be an owner occupant. \u00a0\u00a0The Homeowner Association claims that the percentage of rentals have been filled and since that quota was met, this leaves only owner occupants eligible to purchase the property.\u00a0\u00a0\u00a0 Now your pool of buyers has been decreased greatly leaving only homeowners to buy the property.<\/p>\n

The first thing you need to do when obtaining a short sale or any type of deal from a Seller, that you are interested in purchasing the property to fix and flip or just rent, is to obtain the Homeowner Associations Bylaws.\u00a0 There are Bylaws and Declarations that the Homeowners Associations are to provide to a new buyer.\u00a0 Here are some of the things you must look for to prevent any show-stoppers:<\/p>\n

1.\u00a0 Application Fee for the New Buyer<\/p>\n

2.\u00a0 The New Buyer must be approved before the Board and the time-frame for this approval<\/p>\n

3.\u00a0 The percentage of owner occupant homes versus rentals allowed<\/p>\n

4.\u00a0 The colors in which the exterior of the house needs to be painted<\/p>\n

5.\u00a0 The size of tree(s) that needs to be planted<\/p>\n

6.\u00a0 The type of fence you can have on the property, if any<\/p>\n

7.\u00a0 The New Buyer cannot purchase the property in a company name, ie. LLC, Inc. or \u201cC\u201d Corporation and more!<\/p>\n

Where do you find out this information?\u00a0 First you need to ask the Seller what is the name and contact information for the Homeowners Association(s).\u00a0 Often, I find that the sellers no longer have this information.\u00a0 Please note that there could be one or two associations controlling the property.\u00a0\u00a0 The names of the Homeowners Associations are shown on the title work and you can track their telephone number from title work and\/or just google their information.<\/p>\n

Once you know the name of the Association, \u00a0you will need to contact them and ask for a copy of the Bylaws and Declarations.\u00a0 There is sometimes a fee of up to $50.00 for these documents.\u00a0 At the same time, you need to ask the Seller to obtain information as to what amount is owed on the Homeowner Association dues.\u00a0 \u00a0Fighting with the Associations to take less than what is owed on their dues can be very time consuming.\u00a0\u00a0 You also have to remember that the Board Members of the Homeowner Associations are individuals who live in that subdivision.<\/p>\n

Therefore, sometimes your request for a reduction of the Homeowner Associations dues is denied because these people have made this decision based on a personal vendetta not a business decision.\u00a0 I had one Homeowners Association that hated my Seller and refused to reduce his $23,000 dues so I had to have the new buyer pay these dues over and above the purchase price in order to get this deal sold.\u00a0 Yes, the short sale lender did approve this type of deal.<\/p>\n

In order to sell a house, you have to think outside of the box and never take \u201cNO\u201d as your final answer.\u00a0 I teach my students that there is always a way to make it work and I show them how to do it.\u00a0 Even though the Homeowners Associations know that they are only entitled to 1 full year of dues pursuant to Florida Law should the house go to foreclosure, they didn\u2019t want to settle because they really disliked the previous Seller.\u00a0 I do believe that there were no intelligent life forms there!\u00a0 Making that kind of decision and not settling with a perspective buyer is only now going to increase the \u201cdues\u201d that are currently due and also what is owed for future Homeowner Association Dues based on their new Reserve Study.<\/p>\n

I have two properties at this time that the Homeowners Associations are controlling where only an owner occupant can purchase the property, as their quota for investment properties has been filled.\u00a0 As an Investor, where does that leave you?\u00a0 Depending on the terms and conditions, it may leave you totally out of the deal. \u00a0\u00a0That is why I say that being a Realtor and an Investor gives you the best of both worlds.\u00a0 So \u2026 unless the Investor is going to purchase the property as a second home and live in it, he or she cannot purchase the property.\u00a0 Also \u2026 if the Investor purchases the property, he or she can only resell the property to an owner occupant.<\/p>\n

Always fully analyze your property and your exit strategies before you decide to purchase the property, because sometimes, it is just not worth your time and effort!<\/p>\n

I look forward to providing you with future tips!\u00a0 Stay tuned or join me at my next boot camp in February!<\/p>\n

 <\/p>\n

Happy Negotiating!<\/p>\n

Kimberlee Frank<\/p>\n

www.SellFastRealty.com<\/a><\/p>\n

www.ForeclosuresGonewild.com<\/a><\/p>\n

www.RealEstateJunkie.com<\/a><\/p>\n

www.ShortSaleNegotiating.com<\/a><\/p>\n

Like me on www.facebook.com\/foreclosuresgonewild<\/a><\/p>\n

Like me on www.facebook.com\/sellfastrealty<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

When working with a Seller on purchasing a short sale it is very important to know the terms and conditions that the new buyer must uphold with the Homeowners Associations.\u00a0 Recently, we started working on a short sale wherein the Seller owed the Homeowner Association a fee of $457.00 per month and another Homeowner Association […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-372","post","type-post","status-publish","format-standard","hentry","category-free-articles"],"_links":{"self":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/comments?post=372"}],"version-history":[{"count":0,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/372\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/media?parent=372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/categories?post=372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/tags?post=372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}