: Beware of HOA Estoppel Letters and Attorneys Holding Them Hostage!

Beware of HOA Estoppel Letters and Attorneys Holding Them Hostage!

Hi folks. I'm pretty cool, calm and collected when it comes to dealing with Short Sale issues BUT.......today I'm really pissed!!

In a nutshell, I have been working on getting a FHA short sale approved for about 10 months now. We lost the first Buyer because the 2nd mortgage, PNC Bank, would not budge from wanting $6,200 to remove the lien so we could close. Normally this wouldn't be a big deal except in this case we were dealing with an FHA Pre-Foreclosure Sale (PFS). When it comes to junior liens this is what the FHA guidelines state:

www.CentralFloridaShortSales.com

Basically what this means is they will pay a MAXIMUM of $2,500 towards the junior lien. In my case the amount is down to $2,250. So we had to find $4,000 to make  the deal work. The Seller is destitute. It's only a $60,000 transaction so there is certainly not enough commission to make it work.

Broker Bryant taking a time outAnyway we had to place the property back on the market letting any potential Buyers know we needed a purchase price of $60,000 AND the Buyer would have to contribute $4,000 to the 2nd lien. The $4,000 would show up as an extra closing cost for the Buyer on the HUD.

Well we got lucky and placed the property back under contract quickly. I submitted back to the 2 lenders and they gave me their updated approvals that were good until 30 September. The Buyer received final mortgage approval on Monday the 20th and we were heading towards closing. All was well with the world!!

Until today. I received an email from my closer stating that the HOA sent their bill over to an Attorney last week. The Attorney, who I spoke to earlier today, said "By law we don't have to release the estoppel letter until October 7th. If you need it sooner than that then you need to overnight us a check for $250. Once this is received we'll send the estoppel letter right over".

The estoppel letter is now being held hostage by a %$#@*& Attorney. By the way as of two weeks ago the arrears on the HOA dues were $565. I can't wait to see how much the Attorney charges on the estoppel.

To solve the problem, the closer, that I have used for 15 years, is overnighting a check from the title company (Do you have a title company that would do that for you?). Hopefully once we see the figures we'll be able to make it work. I can almost feel my little bitty commission slipping away!!

Just another day in the life of a Florida Short Sale Real Estate Broker. So how was your day?

Are you facing foreclosure in Florida?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

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Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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16 commentsBryant Tutas • September 22 2010 06:17PM

Comments

Reserved for TLW

Posted by Bryant Tutas, Broker/REALTOR, Tutas Towne Realty, Inc (Bryant Tutas-Tutas Towne Realty, Inc) almost 4 years ago

Are you an agent that needs help with your short sales? If so click below and come join us.

Short Sale Agent Network

Posted by Bryant Tutas, Broker/REALTOR, Tutas Towne Realty, Inc (Bryant Tutas-Tutas Towne Realty, Inc) almost 4 years ago

Bryant - By law? What is this law? I've never seen such a situation!

Posted by Wendy Rulnick, Destin FL Real Estate (Rulnick Realty, Inc.) almost 4 years ago

Bryant, 

God Bless!  It's a roller coaster of excitement in the short sale world.  

All the best, Michelle

Posted by Michelle Francis, Realtor, Buckhead Atlanta Homes for Sale & Lease (Tim Francis Realty LLC) almost 4 years ago

Bryant.

1. PNC is ridiculous to work with. They managed to squeeze the extra $4,000, but usually they just force the property to the auction where they get zero. The higher you escalate the worse it gets. They apparently promote the worst to get them out of the way.

2. HOA's are hard to deal with.

3. HOA attorneys are harder to work with.

4. FHA raised their minimum ratio from 82% of BPO to 84%/86%/88%, making it harder to hit their net.

The list goes on. But somehow short sale Realtors like yourself get it done even though the lienholders put up all these barriers.

Posted by Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827) almost 4 years ago

Bryant:  You've got a great title partner.  Hold on to that one.  I've had situations made much easier by my favorite title company.  Hang in there.  You'll get this short sale closed.

Posted by Chris Ann Cleland, Associate Broker, Northern VA (Long & Foster REALTORS®, Gainesville, VA) almost 4 years ago

Have you ever worked so much harder for much less?  Tough way to make a living.

Posted by Allison Stewart, St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904 (St.Cloud Homes ) almost 4 years ago

"Do you have a title company that would do that for you?":  Answer:  I am afraid to put that one to the test.  I think so but when push comes to shove, true colors come to the forefront. Sorry you are going through this unnecessary nonsense.

Posted by Kathryn Maguire, Serving Chesapeake, Norfolk, VA Beach (GreatNorfolkHomes.com (757) 560-0881) almost 4 years ago

BB ~ There is always someone to put another stick in your spoke.  You are a great example that your not doing it for the money.  What money? 

Posted by June Tassillo, Let me help you with the next phase of your life! (RE/MAX Elite Realty) almost 4 years ago

Hi BB-I am sorry this is happening to you but I gotta say that I love that Time Out Chair Picture :)! You are the perfect person to be working this short sale for this seller and this shows what a true professional you really are.  Good luck with the sale and I certainly hope it doesn't eat up all of your commission!

Posted by Brenda Mullen, Your San Antonio TX Real Estate Agent!! (RE/MAX Access) almost 4 years ago

We have a couple of subdivisions in our area with real D(*^$ running the HOAs.  I hate when I hear REO or Short Sale in those subdivisions.  Makes me throw up a little in my mouth.  I only continue to fight it because it's not the buyers or even the sellers fault.

Posted by Tammy Lankford, Your Lake Sinclair Expert (706-485-9668) (Lane Realty) almost 4 years ago

I feel your pain.  And yes, I do have a title company that would do that for me.  I guess I am lucky.

Posted by Tere Rottink (CoastalVa Realty Inc) almost 4 years ago

Good morning Bryant,

Wow..this is not a fun situation! Isn't there someone you can talk to about this attorney..holding you hostage!! He should be reported (not sure to who). Deals like this are hard enough to close and zap the energy out of everyone involved!!

Posted by Dorie Dillard, Realtor-Canyon Creek- NW, Austin TX Homes For Sale (Coldwell Banker United Realtors) almost 4 years ago

I've recently had an association add money just because they could. $150 for this and $200 for that. No mention of it EVER in the bylaws, etc.  On a foreclosure, there isn't much that you can do with this stuff.  If you could report the attorney for highway robbery, where would you go?  Sherwood Forest Police Dept?

Posted by Lyn Sims, Schaumburg Homes (RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago) almost 4 years ago

Well the attorney is ignoring me on this one. We did finally receive the estoppel letter. She charged $250 to generate the letter and added $850 in legal fees to the $553.00 HOA bill. So of course we couldn't get the charges through HUD. HUD will only pay up to $1,000 for HOA fees and they will not pay attorney fees. We are $406 short from being able to close on this short sale. I have agreed to pay the shortgage myself since the seller has no money at all. My $1,900 is now $1,500 of which I have to pay a 25% referral fee. But my seller will not be foreclosed on.

 

Posted by Bryant Tutas, Broker/REALTOR, Tutas Towne Realty, Inc (Bryant Tutas-Tutas Towne Realty, Inc) almost 4 years ago
Well put, sir, well put. I'll certaliny make note of that.
Posted by Amory about 3 years ago

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