Please explainto me:HOA foreclosing before the bank???

[pelicula]

Hello everyone,
I have been discharged in March 09 (ch 7). I surrendered my condo , but the bank has not taken any steps towards foreclosure at all. Mortgage not paid for 19 months already.
My HOA feee is $1600 monthly (too expensive). Did not pay for 1 year (since filing for Ch7).
I received a letter of Indebtness from HOA lawyer and they said they will start forecosure process. They also filed a lien for 20K.
What will happen if they foreclose? Do they become the title owner instead of me? and throw me out?
What happenens to the mortgage holder(Bank of America)?
Does the bank later take the condo from the HOA??
Can I prolong staying in the condo, since the bank did not not forclose??

Thank you all.

[HHM]

Hate to give this answer, but it depends on your state's law. There are a few ways this could go.
1. Your state provides an HOA with a "super priority" lien. Which means, once an HOA places it lien, it goes in front of the 1st mortgage. HOA goes to foreclose, sells your Condo for at least the value of its lien, new owner gets a cheap condo (the other mortgages are crushed). Note, this is the rare option.
2. Your state provides an HOA with a "Super priority" lien; however, the foreclosure of an HOA lien does not crush the 1st mortgage, thus the buyer would be buying subject to the the terms of the first mortgage.
3. HOA does not have a super priority lien. This means if they foreclose, any buyer would need to fully pay the mortgages and the HOA to get the property.

[aljohnson007]

Generally, or at least in Florida, a 1st mortgage is superior to all other liens except tax liens If you are underwater on your mortgage, the HOA would not gain anything by attempting to forclose. As for the HOA fees, if they were IIB, they were discharged but anything after your filing date is your responsibility and the HOA could sue you personally. BOA is notorius for not forclosing on property that has no equity and where HOA and/or other fees run with the title. Best to check on your State laws in your situation. Good luck.

[pelicula]

Thank you HHm.
I live in South Florida.
Does the bank have any say at all when it comes to HOA foreclising?
Does HOA have to notify the bank of its intent to forclose?


Thank you

[limage]

I am in the same boat in Florida. I stopped paying my 552 fees in April (I thought mine were bad-1600! yikes!) My condo association has filed for a summary judgement and is foreclosing faster than the bank (the association filed a lien before I filed, so I surrendered to them and the bank). There is no equity (probably worth 180, first mortgage is 208k+, second loan with chase is 50k+).
As I understand it...the association gets to "perfect" their lien and remove me from title so that they can evict me or force me to rent. I don't think the association gets paid on their lien (they just wait for the bank to foreclose), but I think the reason why they are doing this is so that they can rent the property while they wait for the bank to foreclose.

My attorney told me I should plan to be out 30 days after the hearing for the summary judgement. I check everyday on the county website.

By the way, I am not 100% confident that this is the process or the reason why the association is foreclosing. I have spent HOURS trying to research this online, and this was the best explanation I found (although this attorney works for associations)

http://www.condocollections.com/Practice-Areas-Overview/CollectionsProcessMythsandFacts.shtml

I also think the property management makes money off of the HOA foreclosure, and that they pushed the association to do this.

In their rush to foreclose, I noticed that they NEVER served the first mortgage company anything, but the did serve my second loan. I am planning to tell the mtg co soon to see if it will buy time.

[pelicula]

Thank you limage for that informational thread.
Is it possible to hire a lawyer now and tie the HOA inlitigation (court) so that it will prolong or halt the HOA foreclosure process.
Maybe the bank will forclose by that time ( Bk of America, previosly Countrywide).
I want to stay in the condo untill the bank forcloses and maybe they will pay off the HOA lien???

[pelicula]

Bump

[limage]

I think the particular questions you are asking should only be answered by an attorney.

FWIW, today I received the notice for the summary judgement March 4. I don't think there are any delay tactics at this point for me. The only thing I noticed is that the HOA never served my first mortgage company. I'm going to start packing!

[Ugh07]

the HOA foreclosing can definitely make you have to move out faster...no question about it.