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Homeowner Associations Getting Out of Control in Florida

Wow – What a crazy week I had.  I am writing this article to let everyone know what is going on with Homeowner Associations during a short sale.  First off, I want everyone to understand that Homeowner Associations have the right to personally go after each and every Seller regarding their dues and it can become a personal judgment against the Seller.

Many homeowners are behind on their houses payments are being forced into foreclosure.  When it comes to a short sale, all liens or amounts due on the property for potential liens will need to be discounted and/or paid off in full.  Florida has many properties that have homeowner associations dues.  Some have more than one homeowner association.

It use to be so easy to negotiate with the homeowner association regarding the dues owed on a property.  A couple of years ago Florida passed a law that guaranteed the homeowner associations one year worth of dues should the house go into foreclosure.  This law did not take into consideration what if the homeowner needed to do a short sale.  When the law first past, many homeowner associations would  not even consider negotiating on the balance due to them during a short sale because they knew that the Bank would have to pay them at least one year worth of dues should the property go to foreclosure.

Recently, I had not just one deal but three deals where the homeowner associations would not agree to accept the short sale discount that the Bank offered.  All three properties were under $60,000 and were getting more than 1 year worth of homeowner association dues.  The worst part of negotiating with the homeowner associations they request an estoppel fee to be paid upfront  for providing the homeowner with the total amount due for homeowner associations fees.  The estoppel fee is either paid to the management company and/or an attorney.  The price ranges from $100 to $500.  This is totally crazy because if you contacted your mortgage company for a payoff their would be a nominal fee of $15 for the payoff figure.  Who do you think is paying the fee prior to finding out of they will NOT agree to the discount? We have to guess at the amount due based on what the homeowner informs us and when we know we are getting close to a short sale approval, the estoppel fee is paid by the title company and/or the homeowner.   I am now requesting my sellers to pay for the estoppel if they are more than 1 year behind on their homeowner associations dues.  In addition, after reviewing the amount due to the homeowner associations, they are including late fees, interest fees, attorney fees, broken blind fees, non-approved tenant fees and more.  A homeowner association bill that was originally $900 for late dues is now $21,000 based on the above junk fees.  $1,000 for broken blinds, give me a break they can only see the blinds from outside the unit.  I do understand they don’t want junky properties however, how would they like boarded up properties or broken windows like there are in many states.

I totally understand that right now it is tough for the homeowner associations as they are taking a big hit due to the non-payers.  In addition I feel sorry for all the homeowners whose dues are being raised to cover the homeowners in foreclosure.  However, do the homeowners who are current really know what is going on.  Do they know that many houses could be sold if the homeowners association would agree to a discount versus allowing the house go to foreclosure which decrease the value of their properties more?  I kind of doubt it!  If they did, they would be in agreement that having some monies being paid now and a new neighbor paying their homeowner dues is better than waiting the 749 days which is the time line for many foreclosure actions in Florida.

I am still working on two of the three properties dealing with the attorneys from the homeowner associations to get them to accept $4,000 now and a new buyer which would avoid the homeowner going into foreclosure.  The last negotiation I had with the attorney for the homeowner associations refused to talk to me and would only speak through her secretary.  We were off by $1,800 which the attorney said “have the buyer, realtors and title company take a discount”.  It is bad enough that the short sale lender is reducing commissions to realtors to 5% or 4% if you a good enough agent to list the property and find a buyer, now the homeowner associations are working against the people who are helping them stabilize their community by selling their homes.  This is totally wrong!

If you are a homeowner and you are going through foreclosure, I would recommend to do your best to keep up your homeowner associations dues or they can come after you personally.  If you are a realtor, I would highly recommend that you find out from your homeowner how far behind they are on their dues.  If you are a homeowner paying your dues, attend your board meetings and find out what are they doing on short sales.  You do have the right to speak at a board meeting.

We are all working together to improve the economy, can we all play nice?  I would sure hope so.  I did close one of the three deals but had to pay $300 towards the homeowner associations dues.  I didn’t like it at all, however, it was the only way to get the deal through.  I would have loved to walk away from the deal and tell them forget it.  However, there were circumstances that stopped me from doing so.  The short sale approval letter was expiring and the bpo value on the property would be expiring too so that would mean another bpo value from the bank and more paperwork from the homeowners plus my homeowner would still have the same problem next time.  The buyer had to be out of their place and had given notice so that would mean possibly a new buyer.  I am a great negotiator when in comes to playing poker (that is what I call negotiating), however, I knew when to fold and close the deal for the benefit of all parties including the homeowner associations.

Receive Great Short Sale Tips from FREE SHORT SALE MANIFESTO FOR REALTORS – CLICK THE LINK:

 

https://vw942.infusionsoft.com/app/form/short-sale-manifesto-for-realtors

 

Kimberlee Frank

www.SellFastRealty.com

407-888-3433

 

 

 

 

 

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Veteran Short Sales his house keeps his VA Eligibility

When I moved my office into Winter Springs Centre, in Winter Springs, Florida rented a unit right next to the Eagles Club.  The Eagles Club also known as The Fraternal Order of Eagles, The Fraternal Order of Eagles is an international non-profit organization uniting fraternally in the spirit of liberty, truth, justice, and equality, to make human life more desirable by lessening its ills and promoting peace, prosperity, gladness and hope.

I joined the Aerie Eagles Club #4449 which has many members including many veterans.  I liked the club because it was a private club, helps so many charities and the fact that it is right next store to my office.  I still can remember one of the first times I was in the club and they had the music playing and was questioning “I wonder who is moving in next store?”  Someone asked to turn up the music and the bartender said “no” out of respect of the new neighbor.   I laughed and said who cares about that new neighbor they won’t care, turn up the music.  However, they wouldn’t turn it up until I said I am the new neighbor and I like music please turn it up.  That was a beginning of a great friendship with the members of the Aerie Eagles Club #4449.

Eagle can Fly Now

The more I went into the club, the more questions members would ask about foreclosure versus short sales and how it would effect a veteran and their eligibility.  Even though I had done well over 500 short sales, I had never done a VA short sale before and didn’t know what would happen when I did.  Now I do know.  Here is the the story:   I recently represented a Veteran, Patrick, who didn’t know what he was going to do with his house.  He had purchased a manufactured home on land for $125,000.  He was in foreclosure and very frustrated about the situation.  His hours were cut from his place of employment and on top of all the craziness his wife and him separated.  The house was in bad shape.  There was a lot of water damage by the front bay window causing interior and exterior damage.  The value of the home with the land was $25,000.

I tried putting Patrick through the HAFA Program and he was denied the $3,000 because he had vacated the home.  However, I did get the bank to agree to the short sale and not go after him for the difference.  So, he received a full satisfaction of the loan on his home.  I was at the club tonight when he told me that he recently received a letter from Veterans saying “That he still has his eligibility to purchase another home however, could not use that eligibility certificate for 6 MONTHS.”  I was so excited for him as 6 months is nothing!  He even told me that his credit increased by 15 points because the loan was now paid off.   He told me that he can now sleep at night thanks to me and in the future, not that he wants another house now, he can use his VA  Eligibility when he wants too.

I told him that if you short saled a FHA loan that the homeowner won’t be able to get another FHA loan for at least 2 to 3 years and that 6 months was great.  So, if there are any Veterans out fighting the stress of foreclosure and  wondering if they should do a short sale versus foreclosure, I am suggesting that a short sale is better.  Why lose your VA Eligibility Certificate when you fought for our country and you deserve to keep it!

Thanks to all the veterans in this world we love you and should you have any questions or need my assistance, call me at 407-888-3433.

God Bless,

Kimberlee Frank

www.SellFastRealty.com

 

 

 

 

 

 

 

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Road Rage on US-417 in Florida – Do you have a Road Block?

I was driving Saturday night on US-417 minding my own business heading home from a real estate seminar.  There were hardly any cars on the road.  I watched a car come up behind me and stay behind me for a couple of minutes.  He didn’t flash his lights like most inpatient people do, he decided to go around me and then get in front of me and slow down.  He didn’t cut me off or anything he just got in front of me.  Since I had my car on cruise doing 5 over the speed limit, I had to slow down or I had to pass him.  I decided since there were no cars other than the two of us that I would just get in the other lane and put my cruise back on and pass him.  All of a sudden when I was coming up to the side of him, he decided to swerve in the lane that I was in and slammed on his brakes.  I thought “OMG” what the heck is he doing.  I slammed on my brakes and then changed lanes to pass him on the left.  He did it again!!  I thought “OMG” what is he doing?  Is he drunk?  Is he mad at me for something?  Or … Is he mad at my marketing message on my car (look at the picture of the car).    I tried to take a picture of the back of his car with the license plates so that I could report him but he slammed on his brakes so fast, I literally almost hit him as I dropped my telephone.    I didn’t even have time to call the police for help!!!

Did this cause Road Rage?

All I wanted to know was WHY?  What was his problem?  After about 10 minutes of being cut off from lane to lane and him slamming on his brakes, I turned on my bright lights.  I was determined that I was going to get next to him and ask him “WHY”?  I know many of you would want to pull next to him and ask him are you freakin crazy?  Do you have a death wish?  Or, pull over and I will really give you a piece of something !@?  We finally got a few more cars involved in the Road Rage.  I let a few cars pass me, then I got behind them.  The cars couldn’t pass him and he boxed me in and … I didn’t get close enough to look at him through his dark tinted windows so I could SCREAM at him.  I decided I didn’t have a death wish and whatever the “WHY” was it didn’t matter anymore.  What mattered was I wasn’t going to die for him so I had to make a change.  Not that I had to give up on where I was going, I just needed to change lanes and move in the same direction.  However this time, I needed to be selective as to which speed and lane I needed to go in this is the same in life.  It is time for you in life to change lanes and keep going.

Road Rage comes into our life in all forms.  What was working in 2008 is not working now.  We all need to know when it is time to change lanes and speed back up to get to the finish line.  Have you started your real estate career whether you are an investor or realtor and you have run into road blocks? Are you a Seller who has no idea of how they are ever going to own a home again?  Are you saying “OMG” what is going on?  What should I do?   I have decided to have you change lanes to the fast lane and lead you to the finish line.  It doesn’t matter what career you are in or what type of real estate investing you are considering as I have done it all and I mentoring on all types of deals and professions or if you are just looking to buy a home again. I want to provide you with the “WHY” that keeps coming up in your vocabulary.   I want to personally mentor you for 60 days for Free.  Yes, you heard me correctly FREE.  I want to start your engines again and take you all the way to the finish line.  Our economy is perfect for you to be successful in real estate. Yes, this includes Sellers who have been through foreclosure.   All I need you to do is call my office at 407-888-3433 and raise your hand and say “YES, I need to start my engine”.  I am limiting this mentorship for the first 30 people and once it filled it is filled.  Take Action NOW!  Call my office now at 407-888-3433 and let me take you to the next level in 2012.  There are no strings attached!

God Bless,

Kimberlee Frank

www.SellFastRealty.com

www.ForeclosuresGoneWild.com

PS.  Consider this my Christmas Gift to you!

 

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