Well, if such payments are not tax deductible, they're are even less palatable to me.

By the way, the listing agent told me the lender is offering the HOA $5K of the $10K owed by the seller. I think that's a pretty good deal and don't see why they'd let the deal fall through. I doubt they're going to get a better deal in a future transaction when the debt is even more. However, I can see why they'd try to play hard ball to see if I'll pay the $5K. Would you say they're bluffing? 

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Bargain_Hunter wrote:
Well, I know HOA fees are not tax deductible when you are living there. However, if you pay the seller's HOA debt as part of the closing transaction, isn't that different?

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When you sell the property it should be part of your basis, so in that sense it should be tax deductible. But neither the HOA or the seller is a charity, so, no, there's no deduction to be had by paying the latter's debt to the former.

Have you talked directly to the HOA about this?

Are you sure this can be put into the basis of the house? It's not officially in the recorded price.