Florida HOA Settlement Request

Dear Sir or Madam,

The above-referenced property is in foreclosure. The property owner has contacted me requesting a short sale. Please be advised the shorting lender will only offer one year’s worth of the dues because that is all they are required to pay per F.S. 720.3085 2(c) which reads:

Notwithstanding anything to the contrary contained in this section, the liability of a first mortgagee, or its successor or assignee as a subsequent holder of the first mortgage who acquires title to a parcel by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due before the mortgagee’s acquisition of title, shall be the lesser of:

1. The parcel’s unpaid common expenses and regular periodic or special assessments that accrued or came due during the 12 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or

2. One percent of the original mortgage debt.

Unfortunately, with an HOA balance significantly higher than the amount that would be offered by the property owner’s lender, I am unable to accept this listing assignment without first establishing that the Board of Director’s for the Association is willing to settle the HOA balance upon successful closing of the contemplated transaction.

The property owner has experienced a severe hardship and the payment would come from the real estate commission. Please accept this as a request for settlement of the HOA fees for the above-referenced property for $2,000. I anticipate it will take 120 days for us to reach a closing date. Again, I am unable to accept the listing assignment without your prior agreement for settlement. I hope you will look favorably on this request and I look forward to your acceptance.

Paul Porvaznik, Realtor
Residential Connections