Short Sale / Probate with HOA back dues
Not sure if this should go to the HOA forum or the short sale forum.
Location is Fort Lauderdale, FL. Small building with a condo association. Monthly condo fee is $300 which basically pays for water/sewer/trash, landscape, common electric (washer dryer exterior lighting) and the major expense is insurance.
One of the units had a diseased owner - death occurred overseas actually, and it has been two years, was in probate, then a short sale, with two lenders, basically it's been "PENDING" for a long time.
Meanwhile, no one has been paying the condo fee for this unit for over two years.
Since there are only 4 units to this building, missing 25% is a lot and so we had a few special assessments to make up the difference.
I was told the back money owed can't be collected in full, the most they will get from the bank is about $1000 at closing. So the other three owners have to absorb the loss?
Now to make things a tad trickier...the buyer currently on the short sale contract for this unit, is also one of the existing owners, he is also the one handling the HOA finances. Is this a conflict of interest? In other words, why wouldn't the HOA file a lien against the current owner of the unit for the entire amount owed - instead of accepting some minimum negotiated amount?