Need Help VRM Dealing with paying off HOA

I'm doing my first deal with VRM and they can not put HOA cost on the HUD. This has been like pulling teeth . Does anyone have experience with this? Also I have a feeling hey are going to ask me to pay this upfront it is around $2500 and more than the commission on this condo. Is that standard also? Any info or advice would be helpfull. I have another listing with them and would like it to go smoother than this has. Thanks in advance.

You need to be a member of REO Pro Network to add comments!

Join REO Pro Network

Email me when people reply –

Replies

          • I don't think I've dealt with Mike.  We have a different HOA guy.

            I do understand the concern with laying out cash on a new account.  I'm not sweating VRM but I am watching some of my small outsourcers closely.  The smaller clients seem to be the ones struggling more and I don't want to get into a situation where they file bankruptcy and I'm left flapping in the wind (like a recent Fannie outsourcer).  I had one that closed in Nov 12 that we laid out $10k and the commission was around $4k.  I just got my reimbursement 90 days later... not cool.

            • Not to cool at all. I'm looking at being into this around 4k and my commission is about 2300. I don't really want to loan money for 60 days.

               

              If this was my old PAS account when I'm selling 30-50 houses a year for I don't mind at all. But I have this listing and one other thats in valuations and thats it.

               

              They business is just changing. They used to expect us to lay money out but they were giving us assets. Now they want us to do it with not gaurantee of future assets. Just kind of crazy. Our risk level with Gov Foreclosure seems much higher than with standard WF/BOA etc. .

              Thanks for all of your imput. It is appreciated.

  • If you're going to be in the REO game, you need to be prepared to overcome paying bills/items for the Servicer/Bank.  This is almost standard in all the REO's we list.  

    If it's too much of a financial burden, you may seek to have a one-on-one conversation with your specific Asset Manager and/or the HOA Processor at VRM, and seek their assistance and ask for them to handle via "direct pay" - where you obtain the payoff and provide them w/the Estoppel, and they pay it off from their end, and then provide the proof of payment (and you'll need to obtain a zero-balance letter from the HOA and/or the Release, depending on who your Title Closer is) to the Title Company to cure the issue in order to close.  I've had to use this method when we had a $15k payoff (which I had personally negotiated down from $365k), and it was not a problem w/my Asset Manager and my HOA Processor.

    • Joshua,

       

      Thanks for your response. I've been selling REO for over 10 years. My main account is with PAS/Wells Fargo. This is the only time I've ever been asked to pay past due HOA liens etc. They are the only people I work with that will not allow HOA to be on the HUD. Othere Fannie Mae Reverse Mortgage that I do pay it direct.  I pay and have paid many Utility bills etc. I just find it odd they expect me to lay $2500 to close then take in their words at this point 45-60 days to repay.

       

      On another note $365K in HOA fee's seems like that HOA was trying to take advantage and should be illegal.

       

      Take care.

This reply was deleted.