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Listed own property for sale that has a tenant (lease until Dec. 31, 2009). Tenant's rent is being paid to 1st & 2nd mortgage every month. 1st mortgage increased due to our non-payment of property tax that was paid by lender. The Homeowners' Association has not been paid also and I received a letter saying they will put a lien on the house until the HOA dues are paid in full. They have given me an extension until the end of the month. I received an offer on the property that will satisfy the 1st and 2nd mortgage in full but will not leave me with anything to pay the HOA. How does this HOA lien play out at the closing table. Can I tell the title company to include unpaid HOA dues in the HUD with me as the seller paying? Do I have to ask the buyer to include that in their offer?
How about the tenants? Is the new owner obligated to honor the lease until it ends? or will they need to vacate the property?I have verbally informed them of the listing and they have been allowing the showing of the house. When do I inform them that an offer has been accepted? This property is in TX.
Q: Can I tell the title company to include unpaid HOA dues in the HUD with me as the seller paying? Do I have to ask the buyer to include that in their offer?
A: First, is this a short sale? If it is, the primary lender should be paying all closing costs including delinquent HOA fees.
If not, then you have two options. You can pay at closing - the title company will show that on the HUD1. Or, you can negotiate with the buyer to pay.
Q: How about the tenants? Is the new owner obligated to honor the lease until it ends? or will they need to vacate the property?I have verbally informed them of the listing and they have been allowing the showing of the house. When do I inform them that an offer has been accepted? This property is in TX.
A: If you have a 30 day sale clause in your lease or they are month to month, then you can give them 30 day notice to vacate. If not, you may have a problem. Is the buyer an investor who wants a tenant or someone who is buying to live in the house? If the latter, you will need to coordinate the closing to ensure the tenants are vacated.