HOA foreclosing before Bank? How is this handled in Ch 7?

[limage]

[aljohnson007]

It is doubtful they will foreclose being there is two superior leins ahead of them. However, as for the HOA fees, you are personally responsible. I was in a similiar situation and got sued in small claims but was able to negotiate the back fees down to 50%. HOA fees are NOT dischargeable in bankruptcy.
My suggestion is try and talk to them and see if there is any wiggle room.
Good luck.

[mhman]

HOA fees is not dischargeable?

As far as I know, it's dischargeable. Please double check it out.

The items can't be discharged are taxes, alimony, and student loans.

[limage]

HOA fees owed at filing are dischargeable, after filing they are not.

[DebtEnder]

Yup if you have already filed then those fees will stay and the HOA can come after you personally. If you have not filed and they go ahead with foreclosure or in some fashion you are no longer on the deed then you can file and wipe put any fee's due.

Kinda why I hope my house gets foreclosed on before new years as that's when the hoa due come due for the year.

[limage]

But they have filed a lien. Now it is secured debt. Why do I keep getting conflicting info that fees before filing are dischargeable? I can understand if I was keeping it they wouldn't be. My attorney's office told me that fees before filing are dischargeable.

[DebtEnder]

If you have filed and you still have property that has hoa dues then after filing the hoa can keep charging new dues but any past dues CAN be discharged

And dues that were due BEFORE you filed are gone however. It gets tricky if you want to stay and wipe out hoa dues but I don't think that is your case. personally if you have pricey hoa dues and have not yet filed I would let someone foreclose on the house thereby relieving you of any further hoa charges. You then file BK and the foreclosure balance due and all hoa dues are done and gone.

[limage]

That's one of the reasons I have delayed filing. My county has sought to dismiss my mortgage company's foreclosure due to lack of response (I haven't paid my mortgage since Sept 08). With fees of 552 a month that I knew I would be on the hook for after I filing, I have just been sitting on it. The action by the HOA scares me, I don't know if they can foreclose and put me out or not. I'm sure that is their intention. No one speaks to me hear anymore- it is very awkward- I don't blame them. I just want to leave and move away but if I have to keep paying 552 until the bank forecloses I am just going to stay.

The scary thing is, I dont pay mortgage or HOA fees. I make about 40k a year. I don't pay my credit cards. I still struggle paycheck to paycheck.

[aljohnson007]

Here is an interesting blog re HOA. I suppose it all depends on the State you file in.

http://www.************************/...dered-my-home/

[limage]

Al, I think that blog post reinforces that the HOA dues after you file are still owed. The fees before you file are dischargeable. The fees after you file are new debt.

[aljohnson007]

I agree. What I forgot was I got sued before I filed. Sorry about the confusion. I still don't believe the assoc. will foreclose because when they do, they will have to pay off the two liens before they can take possession of a unit that is underwater.