A homebuyer discovers a $4,200 HOA lien one day before closing. The lender explains the seller will pay it from proceeds and the title company will release it. If closing gets delayed, the lender will ask the seller for a concession to compensate the buyer.
Hey Debbie, Toby here with Direct Funding. What you got?
So glad you called because we've got a major problem. Apparently there is an unpaid HOA lien that nobody told us about and they said it's over $4,200.
Hold on now, calm down. I know it feels like it's, you know, the sky's falling, but let's walk through it. Did they say when the lien was recorded?
I mean, apparently last year, but the seller claimed they didn't even know about it.
That's common. Sometimes the seller forgets that they have those things. The problem is the HOA can put liens on these properties for the unpaid fees and then it's never cleared by title.
So you're saying I can't close tomorrow?
We'll get to the bottom of it. If there is an outstanding lien, then we'll have the seller have to come out of his net proceeds, get the title company to issue that payment voucher, and then get the clouds cleared off.
So what's our move then?
We probably have to get the seller involved, and I know he's an old cantankerous crotchety guy, but we'll get involved because this is what we do as your lender. We make sure that everything is in place, cleared up, and smooth so that when you close, you just rock and roll.
So you're saying we can still save the deal then? Absolutely.
So we'll get to the bottom of it. We'll get this cleared up. If at any reason we can't close tomorrow, we're going to get some concession from the seller on your behalf to offset this pain and anguish.
Thanks for walking me through it. I appreciate it.
Anytime. You have my number. You have any questions, give me a call. We'll get this resolved for you. Okay, girl?
Thank you.
All right, have a great day.
