Can the management company of my homeowners association stop me from short-selling my condo?
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Can the management company of my homeowners association stop me from short-selling my condo?
I was told by the management company that I cannot sell my condo until the 10k assessment loan was paid off. This loan was required by each unit since there were insufficient reserve funds to take care of the required maintenance.
Asked on July 15, 2010 under Real Estate Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Maybe. In a short sale the lender has to agree to sell the property for less than the market value. If there are liens on the property that can not be satisfied or compromised then it could hold up the sale. No buyer is going to agree to take title to property that in encumbered with liens. They will require that the liens be satisfied prior to closing. So here you are with an agreement to short sale but you can not close. You need to deal with the assessment loan at the same time that you deal with the underlying mortgage. You may have to negotiate a bit more to have this transaction go through Good luck.
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