HOA Special Assessment after discharge

[BearChaser303]

I filed in December 2007, was discharged in March 2008. I am surrendering home (included in BK) and it is in foreclosure process with the sale scheduled for July 9th. HOA also included in BK.

Question is, yesterday a special assessment was approved with a due date of this Friday (June 6). Am I responsible to pay this or is it included in my discharge? My attorney says it is included in discharge, because the events leading up to the special assessment occurred before I filed BK. Just wondering if anyone has an opinion, or better yet first hand experience with something like this.

[BassBoy]

Having dealt with a HOA, I may be able to offer some insight. Any dues that you may owe that were included in your Ch.7 can be discharged, but all dues that are after your discharge date are owed until the deed is no longer in your name. For example, you were discahrged in March of this year, but if your HOA fees are due, let's say, every June, your HOA dues may be for the upcoming year, which would will have (technically) occured after your discharge.

[BearChaser303]

I pay dues monthly, and I know I am responsible for that and I have been paying it since the 1st payment due after I filed in December. What I am asking about is a 1 time special assessment that was being considered by the HOA prior to me filing, but did not get approved until yesterday. My attorney thinks I am not responsible for it since the events that led to the special assessment (water damage due to faulty roofs) occurred prior to me filing.

The special assessment is to replace the defective roofs.

[CindyLou]

The debt did not become yours until yesterday. Unfortunately I would say that the debt not incurred until the special assessment was approved.

From what I see on here, HOA's can be the death of many good credit reports postBK. How much are you talking about? It may be better to just pay it and move on...it might cost you more in legals fees to prove you don't owe it.

[BearChaser303]

$5,750.00

[CindyLou]

all at once or some each month over a period of time?...cuz if its over time then you would only be responsible until the foreclosure is final, right?. Have you considered a dead in lieu of foreclosure in order to speed up the process?

[BearChaser303]

It is due all at once this coming Friday June 6. They are trying to obtain financing to be able to pay it over time, however that is not a done deal yet (and may never be). There is a 1st and 2nd mortgage plus the lien that the HOA has (from the debt I owed them which was discharged). So I dont think I can do a DIL, and even if I can it is not going to happen by this Friday. The auction date is just a little over a month away on July 9th.

[getouttadebt]

It may depend on which state you live in and the CC&Rs that the HOA has drafted. My attorney told me that the HOA can only put a lien on the house. We are surrendering our house. Thus, the problem with the lien from the HOA now becomes the bank's problem. Similar to property taxes...any unpaid property taxes follows the property not me.

I am in CA and this is what my attorney told me. Doesn't mean that is the gospel for every state and every HOA. $5,750 is a lot of money -- I would encourage you to consult with an attorney.

[CindyLou]

yea that is such a lot of money!!! Even if they finance it you aren't off the hook because that fee wouldn't be tied to the house. It would be just an unsecured debt.

Sometimes when HOA's are involved I think its best to wait and file BK after the foreclosure is done because they can throw all kind of curve balls at you and usually aren't willing to budge. (which doesn't help you now, but maybe will help someone in the future).

For that amount of money I would certainly consult an attorney re: fighting it. Also, I have to ask, and maybe I'm just ignorant, but how can they just demand such a large amount of money and expect every owner to be able to cough it up???? That just sounds absurd to me. I bet there are others in your community that are not able to pay that money!!!

[TomBrady]

Im not going to be of any help either just a comment and a question,

1. How freaking much can a roof cost what is there only two people in the HOA? You and some other guy. Most HOAs have 50 or so memebers a quarter million dollars for a roof - THATS RIDICULOUS

2. How the hell can they just present you for a bil for nearly 6 grand and say pay up by friday - this so scares me about buying a home in a HOA.

[BearChaser303]

Im not going to be of any help either just a comment and a question,

1. How freaking much can a roof cost what is there only two people in the HOA? You and some other guy. Most HOAs have 50 or so memebers a quarter million dollars for a roof - THATS RIDICULOUS

2. How the hell can they just present you for a bil for nearly 6 grand and say pay up by friday - this so scares me about buying a home in a HOA.

There are 19 buildings and I think 230 units. All 19 buildings require new roofs and there are also other structural defects they are fixing. Additionally their insurance premium quadrupled due to prior claims.

They actually sent the letter about the special assessment a month ago, they are required by state law to give 30 days notice. The homeowners voted on it last night. I honestly thought the owners would reject it, but despite a lot of upset people at the meeting only a few voted to reject.

There was discussion about the special assessment in October or November last year, which is why my attorney advised that it should be dischargeable since the events that led to it occurred before I filed.

Yes a lot of people will be unable to come up with that amount of money by this Friday.