New Law Regarding HOA Fees
Effective December 31, 2011
Under this new law HOAs may charge a homeowner no more than $400.00 as a fee for preparing documents related to the disclosures an HOA must deliver during the sale of a home. Additionally, the HOA may not collect this fee earlier than the close of escrow and may only charge the fee once to a homeowner for a transaction. A.R.S.§ 33-1260 (C, D); A.R.S.§ 33-1806 (C, D); SB1149.
There has been some confusion regarding whether this new law applies to transfer fees charged by an HOA on the sale of a home. Transfer fees can be thousands of dollars, and are frequently a percentage of the sales price of the home. Transfer fees are authorized by A.R.S.§ 33-442, which does not impose a limit on transfer fees.
The new law only specifically limits fees for HOA disclosure documents. Therefore, there is still no limitation on the amount of transfer fees.
By: Christopher A. Combs, Esq. ( Combs Law Group)
No Seasoning on cash out refinances after cash purchase
Borrowers who purchased the subject property within the past six months are eligible for a cash-out refinance if all of the following requirements are met:
The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV, CLTV, and HCLTV ratios for the transaction).
The purchase transaction was an arms-length transaction.
The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property.
The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
All other cash-out refinance eligibility requirements are met and cash-out pricing is applied.
Note: The preliminary title search must not reflect any existing liens on the subject property. If the source of funds to acquire the property was an unsecured loan or HELOC (secured by another property), the new HUD-1 must reflect that source being paid off with the proceeds of the new refinance transaction
Taken from: http://www.TheBriggsLangTeam.com