Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
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Knoxville Short Sales – Why Keeping Current On HOA Dues Matters

Knoxville Home Saver Loan Mod HelpIn a Knoxville short sale, a lender is willing to pay for a seller's portion of closing costs, past due property taxes, and even real estate commissions. Unfortunately, there are certain things that lenders are not willing to cover in a short sale, like homeowner's association dues [HOA dues].  If you're doing a short sale on your Knoxville home, here is why it is important to keep current on your HOA dues. If a homeowner doesn't pay HOA dues, many homeowner's associations have the right to put a lien against the property. This is is why it can be extremely important to stay current on your HOA dues if at all possible when doing a Knoxville short sale. In order to sell the property, all liens against the property must be paid in full at closing to give the buyer clear title. Unfortunately, in many cases, lenders are not willing to payoff HOA liens at closing, since they are already taking a loss on the property. If you are completing a short sale on your Knoxville home, HOA dues can sometimes be a deal killer. If HOA dues remain delinquent for a long period of time, they can incur late fees and attorney fees if a lien is put on the property. At the point, a short sale seller is stuck owing much more than they would have if they would have just stayed current on HOA dues. In some cases, though, it is not always possible for a Knoxville homeowner to stay current on their HOA dues. In some rare cases, it is possible to get the lender to cover the HOA dues. If not, many HOAs will be wiling to work with a Knoxville short sale seller. In many cases, HOAs are wiling to accept a lesser amount of what is owed or are willing to accept a payment plan for the past due HOA dues. While past due HOA dues are not always a complete deal killer in a Knoxville short sale, they can make the process more difficult. Are you thinking about completing a short sale on your Knoxville home? Do you want to hear what options you have to avoid foreclosure. If so, do not hesitate to give my team and I a call at 865-696-9002 or via email at [email protected]. All of our services are done at absolutely no cost to you.

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