I am selling a condo and it's about 10 days away from closing. The buyer's lender sent an HOA questionaire to the condo management company and one of the questions was "In event of a foreclosure, will HOA hold lender responsible for more than 6 months of HOA dues". The HOA answered yes. Now the loan will not be approved because of this.

Has anyone had any experience with this? Is this a standard question in HOA questionaires from the lender or could this be a new question with the recent subprime issues? If it is standard, do most HOA's answer the same way or might this HOA have a more aggresive policy on uncollected HOA dues? Do you think 280 condo owners could sway the HOA to change their policy if this affects their ability to sell or refinance??

They plan to look for another lender that doesn't ask that question, and we hope it's not becoming a standard in these times. Any help would be appreciated! Thanks!