The lenders will often limit the amount of back HOA fees that they will pay at closing on a short sale. That is because a lender that acquires title to a property through foreclosure in Florida is only on the hook for one year’s worth of HOA fees. However, many distressed properties have accumulated several years’ worth of unpaid HOA fees. For that reason, it is oftentimes smart on the part of the HOA to accept the lender’s offer and allow the sale to proceed.
When entering into a contract to purchase a short sale, you must bear in mind that the banks are under no obligation to approve short sales to begin with. If they do choose to approve one, it is only because they believe it to be in their own best interst to do so.
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