Foreclosure bank won't take any contingencies

I’ve submitted an offer on a foreclosure townhouse in Texas and had put in a cap on past due HOA fees in the offer. The agent said that the bank won’t take any contingencies, but not to worry as the bank has to deliver the property free of any HOA fees, taxes prior to selling, anybody have any experience with something similar?

She said : “This is bank foreclosure they do not want any contingencies, you will get a clean Title NO DOUBT about it.”

Just worried to end up owing the HOA thousands. Thanks.

This is typical. Most foreclosing lenders require the buyer to pay any delinquent taxes, past due HOA and other delinquent items. Not much negotiations with this. You can always ask but won’t always receive.

Yeah… , even though the realtor says it will be paid …you can’t really trust anything that is said verbally.

I understand the tax, would HOA survive a foreclosure?

Hopefully you are working closely with Title because they will help you clear these issues. Definately don’t trust what the Realtor tells you. (nothing against them) If the HOA is against Title then no - it would have to be paid through closing.

Your worried over nothing. All the past fees, taxes, utilities, etc. have to be PAID by the bank. No questions asked. They have to present you clear title. This is on a REO.

Now if its in foreclosure and your taking it sub-2 or just buying it outright the back fees have to be paid by either you or the seller.


Look at the preliminary title report. If the HOA has a lien recorded, then that will have to be satisfied before escrow closes. If not, the bank is just trying to make an extra buck off of you for their losses in the foreclosure. Stick to your guns.