p_040When 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.  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.   The 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.    Now your pool of buyers has been decreased greatly leaving only homeowners to buy the property.

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.  There are Bylaws and Declarations that the Homeowners Associations are to provide to a new buyer.  Here are some of the things you must look for to prevent any show-stoppers:

1.  Application Fee for the New Buyer

2.  The New Buyer must be approved before the Board and the time-frame for this approval

3.  The percentage of owner occupant homes versus rentals allowed

4.  The colors in which the exterior of the house needs to be painted

5.  The size of tree(s) that needs to be planted

6.  The type of fence you can have on the property, if any

7.  The New Buyer cannot purchase the property in a company name, ie. LLC, Inc. or “C” Corporation and more!

Where do you find out this information?  First you need to ask the Seller what is the name and contact information for the Homeowners Association(s).  Often, I find that the sellers no longer have this information.  Please note that there could be one or two associations controlling the property.   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.

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

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.  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.  Yes, the short sale lender did approve this type of deal.

In order to sell a house, you have to think outside of the box and never take “NO” as your final answer.  I teach my students that there is always a way to make it work and I show them how to do it.  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’t want to settle because they really disliked the previous Seller.  I do believe that there were no intelligent life forms there!  Making that kind of decision and not settling with a perspective buyer is only now going to increase the “dues” that are currently due and also what is owed for future Homeowner Association Dues based on their new Reserve Study.

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.  As an Investor, where does that leave you?  Depending on the terms and conditions, it may leave you totally out of the deal.   That is why I say that being a Realtor and an Investor gives you the best of both worlds.  So … unless the Investor is going to purchase the property as a second home and live in it, he or she cannot purchase the property.  Also … if the Investor purchases the property, he or she can only resell the property to an owner occupant.

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!

I look forward to providing you with future tips!  Stay tuned or join me at my next boot camp in February!


Happy Negotiating!

Kimberlee Frank

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Kimberlee Frank Broker Short Sale Expert



Kimberlee Frank Real Estate Broker and Teacher/MentorKimberlee Frank is known as “The Real Estate Junkie,” for her unique ability to find ways to creatively help buyers and sellers no matter which direction the real estate market is heading. Kimberlee had already worked as a legal administrator for an Attorney, Builder and Broker for 18 years when she began her Real Estate career in 1998. She dotted the i’s and crossed the t’s on hundreds of real estate transactions and thousands of documents, making her an expert in real estate documentation. Kimberlee’s success began in Fenton, Michigan. She specialized in selling, purchasing, renovating, retailing and lease optioning single-family homes. She has helped many sellers get rid of their “headaches” and helped many buyers find their dream homes!


Since 2003, she has specialized in foreclosures and short sales. After realizing how many families were being forced out of their homes due to financial difficulties, Kimberlee had a heartfelt obligation to use her experience to help those families. She has mitigated and closed over 500 short sales with the mortgage companies, saving Sellers from going into foreclosure. In 2006, Kimberlee and her family moved to Florida. She lives in Oviedo and her Sell Fast Realty Office is in Winter Springs, serving residential and commercial sellers and buyers in multiple counties in Central and Southern Florida.

Kimberlee is also a Trainer and Mentor and has created several different “How To” systems on real estate. Her unique strategies continue to educate real estate professionals across the country. If you have a proven system to help others out of hardship, why wouldn’t you duplicate it and share it with as many people as you can? Kimberlee continues to work with this philosophy!

Kimberlee Frank Author of Big Ideas for Your Business
Kimberlee Frank has been featured on ABC, NBC, FOX, CBS as well as Wall Street Journal, Newsweek, USA Today and numerous other publications. She is the bestselling author of “Big Ideas for Your Business” (Advantage Media 2009). She was also selected as the #1 Short Sale Expert by America’s Premiers Experts.

Please contact Kimberlee at her office at 407-888-3433 to schedule a Free Facts About Foreclosure Seminar. She has numerous testimonials from sellers, buyers and other real estate professionals who are familiar with her giving heart. Whether it is 1 person in need or 1,000…..Kimberlee will educate them on real estate and give them a solution with a peace of mind!

Kimberlee Frank saught out by the media


Are you unsure what to do with your house? Do you need to educate yourself about your options. Click the following link Free Facts About Foreclosure for more information.


God Bless,

Kimberlee Frank



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