Friday, July 9, 2010

Their Lot in Life

I recently heard a first-hand account from a friend who put in an offer on a vacant short sale lot in the El Dorado Hills area. The bank initially agreed to their offer, but then balked and said they had to pay all the back HOA dues. Back dues were not something they could roll into the cost of their loan, and represented a sizable chunk of money, almost 10% of the offer price. The bank wouldn't budge, they withdrew their offer. The lot goes into foreclosure next month, and to the best of their knowledge the bank has no back up offers.

Seems like a lose-lose-lose situation. Now the HOA get's no $$ from the sale, the bank is likely to lose more $$, and our friends are lotless. When will the madness end?

6 comments:

Max said...

This actually might make sense from the HOA's perspective. The back dues will show up as a lien on the lot, and the bank will need to clear it before it can be resold. Your friends were correct to balk at this deal, but the HOA was correct to stand firm. Considering the steep price drops, the bank is most likely looking at a 100% loss anyway. Have your friends check in with the HOA periodically; there's a chance that the HOA will gain title if the back dues are greater than the lot value and they can make the HOA a deal at that point.

Brett said...

I still cannot comprehend how some decisions are made at banks. My good friend is trying to short sell her house right now. The holder of the 2nd wants, in writing, that the holder of the 1st is OK with the sale, but the holder of the 1st says legally, the holder of the 2nd needs to sign off first... both the 1st and 2nd are held by Wells Fargo. Little bit of disconnect with communication, wouldn't you say?

sacramentia said...

I'm impressed that they found a loan on vacant land. Bummer for your friends but there are plenty of options for land in EDH.

husmanen said...

Was the lot your friends were interested in on Via Fiori? This lot just went back to the back with no 3rd party bidders at $80k.

husmanen said...

BT/AB. A follow-up to the water issue from a few months back.

I believe the rates were to change effective March 1st and billing period is for two months.

Now that you may have received two bills, have you noticed much of a difference in the total bill? Has your usage changed?

I ask because I may have overlooked this cost in my EDH calculations, concentrating more on the PG&E electricity cost side.

Thanks.

sacramentia said...

Hi -

Does anyone have an insurance agent that they can recommend in el dorado hills. Preferably someone honest with a fair price that works quickly and is not going to try to sell me something everytime I ask for a new policy.

Thanks!