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HOA Fees Dispute after close of Escrow (FHA Loan)

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Latest post Mon, Oct 12 2009 10:44 PM by Kelcey Morange. 3 replies. Viewed 743 times.
Page 1 of 1 (4 items)
  • Tue, Oct 6 2009 4:49 PM                

    I apologize if this is not the correct forum for this question. But I figured that with many experts here, someone might be able to answer my query.

    I closed escrow on a house in CA on August 6th,2009.

    One of the line items on my Escrow Closign statement was HOA fees for the time period August 6th,2009 through October 1,2009. This is to compensate for the excess HOA fees paid by the seller. Now, the HOA is claiming that, after close of escrow, the seller also requested them for a refund of the excess HOA fees paid by him and therefore they are assessing me the same charge again.

    In other words 1) Seller paid excess HOA fees through end of September

    2) Escrow included that amount (due from me) at closing to refund him

    3) Now HOA claims seller asked them for refund too after close of escrow which they might have wrongly given him!

    The math above is simple and I think all that has to happen is the HOA re-collect the wrong refund from the seller. Escrow agrees with me and just told me to convey this message to the HOA. However, I am unable to make the HOA accounts person understand that it is their error that led to the confusion! I would appreciate any suggestions to strongly present my case (would my closing statement be sufficient proof that no prior HOA fees is due from me?) and clearly myself of this tangle by making the HOA wake up and understand the situation.

  • Tue, Oct 6 2009 7:02 PM                 In reply to

    Have your title company draft a letter to the HOA with a copy of the HUD and an explanation of the line on the HUD that shows the seller received credit from you at closing.  Attend the next HOA board meeting if necessary to explain things further.  The seller was a bit less than honest it would appear in this situation and they should request return of funds from the seller.  The seller either owes you if you pay the HOA or the HOA if you don't, but it would make more sense to let the HOA take care of it by going after the guy rather than YOU going after the guy for the money he certainly owes.

    PREMIUM MEMBER
    Paul Chandler, Certified Mortgage Professional
  • Tue, Oct 6 2009 7:29 PM                 In reply to

    Ask the Title company for a copy of the Buyer closing costs (if they give it to you!!), see if the Title company credited the seller. Forward this copy to HOA.

    Trying talking to the seller or his agent. 

    PREMIUM MEMBER
    "Trusted Advisor. Smart Solutions" Chacko Varghese (Jacob) CA DRE Lic. No. 01790347 Tel: 408-505-5797 Fax: 408-519-6533 Email: subchacko@gmail.com Lending States: California
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  • Mon, Oct 12 2009 10:44 PM                 In reply to

    I agree that a letter from the title agency would be very helpful in this. Additionally, there was likely a page or certificate signed at closing by the closing agent that indicates that the HOA fees were current and made correct (no one owes anyone) by the settlement. In my state (Massachusetts), this is called a "6D" and is recorded at the registry. Ask your title agent or attorney if something similar applies here.

    PREMIUM MEMBER
    Kelcey Morange, Mortgage Consultant Massachusetts Lic # 85965
    Mortgage Master, Inc. 153 Andover St. #200 Danvers, MA 01923 kmorange@mortgagemasterinc.com
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