I had a contract on my investment property for a short sale, the bank agreed to pay some fees, the second trust reduced their fees drastically, but the Condo Assn would not reduce their fees (via their attorneys) or respond directly to my letters. I want to short-sell it, but will keep it if I can get the HAMP LOAN mod. If I can't get the loan modification, can I get the condo assn fees wiped out by deed in lieu or bankruptcy?
Chapter 7 Bankruptcy Attorney
If the HOA has a lien on the property, there is little that you can do if they won't negotiate. Bankruptcy could wipe out your personal obligation to pay the pre-bankruptcy HOA dues, but you couldn't remove the lien in a Chapter 7.
HOAs tend to be very stubborn about this type of thing.
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As was stated in the earlier answer - HOAs are difficult to work with.
In addition to that issue you may have other problems. Make sure you talk to a good CPA or tax attorney about the tax consequences of doing a short sale. Also, you need to ask a good real estate/foreclosure attorney about your exposure should one of the lenders foreclose.
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A deed in lieu will not wipe out condo liens - the bank would have to agree to pay them to get good title. If you give up the unit and the bank forecloses, that will wipe out the lien and give the buyer good title, so the bank may prefer to foreclose if the dollars are significant. You would still personally owe the fees up to the foreclosure, so you may need to file bankruptcy after that to discharge them. If you keep it, a chapter 13 bankruptcy may enable you to avoid the condo liens from before you file, but you will have to pay going forward.