Help!! HOA still charging us after discharge!!

[pattygg5]

It just never seems to end. I got a letter in the mail from my HOA with a bill of 227.00 I called and explained the discharge and the person at the HOA office told me that until the house is taken over by the bank, we still owe the HOA dues after the filing??? Is this true and what should I do?? It doesn't make sense because we surrendered our home and was discharged 11/7??? Any help on this will be greatly appreciated!!

PG

[StartingOver08]

Yes, any HOA/Condo fees incurred after the filing date are yours to pay until the bank finishes the foreclosure and takes the title back into its name.

You have surrendered your home in BK BUT the bank must continue the foreclosure process in order to obtain clear title. The HOA can not collect for the past due fees as of the filing date, but can collect for subsequent fees.

[justbroke]

HOAs enjoy special privileges in a Bankruptcy. You basically ow the HOA assessments and maintenance fees until the property actually changes ownership.

Surrendering your home is merely a gesture and even abandoning the home after surrendering, doesn't make it owned by the Bank.

Please let me add this. Check with your local State statutes on who is responsible for HOA fees. In Florida, they added some provisions whereby if the home is taken in foreclosure, the Bank is responsible for up to 1% of the value of the home or 12 months of HOA fees... whichever is less. (Florida Statute 720.3085) There are some limits on this, so be sure to read up on it... if you're in Florida.

[DeadManCrawling]

JB. I have been trying to interpret that statute.

We just filed CH 7, the house is already in foreclosure, NOD received in Nov.

My reading of the statute suggests that we are discharged in the BK, of pre-petition HOA fees. AND that the bank is now responsible, since it is in foreclosure, for the next 12 months or 1% of the original mortgage, whichever comes first.

Opinions?

and thank you.

[DeadManCrawling]

Of course, once the 12 months passes, it looks like we would again be responsible, if the bank has not completed the FC. Strange law.

[justbroke]

Yes, it's their responsibility for 12 months. Maybe this is why they are waiting to foreclose, so you feel the pain too.

[limage]

The guidelines on this are not clear- at least in Florida they are not. From what my attorney said, this is a gray area and if you are challenged in court by the HOA, you will most likely win. I am taking this gamble with my association. I hopefully pushed things along by not paying the HOA since April, so they had started foreclosure by the time I filed.

If they try to collect, I'm going to fight it. Don't let a clerk at the HOA interpret the law!

[justbroke]

If they try to collect, I'm going to fight it. Don't let a clerk at the HOA interpret the law!

Never! And, to you point on confusion, it's a new law so there may be confusion. However, the HOA is right... they don't care what the law says. They rightfully bill/pursue the current owner as titled with the Recorder of Deeds (Collector of taxes). They then foreclose and that will usually get the Bank motivated to pay it.