HOA Dues During Foreclosure?

[Beach Bum]

Allright, I know this has been addressed before, but I'm still looking for some clarificaiton.

Do we need to keep paying them? If so, until when?

If we don't does the HOA get screwed? Or does the new owner or bank have to pay the back dues like they would property taxes?

I can't seem to find any good legal info about this.

FYI, we haven't paid dues the last 3 months.

Should we catch up in order to not screw the Association.?

[SinkingFast]

Generally, in a Foreclosure situation,......... The buyer at the Foreclosure Sale becomes responsible for all back taxes, past due HOA dues, any necessary repairs, etc, needed on the property.

You should be alright.

But just to be sure, ask your attny if that's the case in your area.

[Beach Bum]

Only problem with my situation is that our HOA knows we're letting the house go and they think that they will loose all the past due fees after the foreclosure sale, especially if it sells for less than is owed. Which it will.

They keep asking me to catch up with the payments until we move out.

I guess I want to know if anyone has some insight as to how it all shakes out? Will they get screwed out of past due fees?

Does anyone have a reference to some law stating otherwise? I don't want to screw them, but I don't want to fork out the cash if I don't have to.

[HHM]

Yes, they will get screwed out of past due fees. And that debt will become an unsecured debt that they can collect against you.

However, HOA law varies to some degree from state to state. If the HOA moves quickly enough to place a lien on the home...it's possible they may have to get paid out of the sale proceeds of the foreclosure (but that will depend on the lien priorities specific to your state). If they don't place a lien for past due fees in time, they will get screwed out of the fees.

[busbis]

I am surrending 2 properties myself. I currently have bills totaling 3 months HOA, plus this year taxes and the assesments that they have just tacked on. All of this totals about $17000. I have not made payment because I knew I was surrendering the properties through bk 13. I thought the mtg company then becomes responsible for anything I haven't paid. Is this not true?

[B12]

If you don't want to screw the HOA, then tell them to act quickly and put a lien on the house. Because as HHM says, its either unsecured debt or a lien.

Chances are they are going to be out of the money anyway. Sounds like the property won't sell for enough to cover the first in line liens.

[BassBoy]

Having dealt with a HOA, I can say that you may have to pay the HOA dues. Even though we vacated our home and informed the HOA that the home will be forclosed, the homeowner is usually responsible for HOA dues until the deed changes hands. I will say that in our case, the HOA where we lived is quite aggressive, so not all HOA may be as aggressive.

[ssdsco]

I think I read somewhere that HOA dues which are due after you file BK may be considered new debt and not dischargeable or something like that. There might be an issue if the foreclosure isn't done when you file which will probably be the case for me..

[B12]

Unpaid HOA dues are fast becoming a problem for civic associations with the number of foreclosures lately.

The only thing they can do is place a lien on the home and get in line with the other creditors or get a judgement for an unpaid debt against you.

The unfortunate thing is, with the shortfall of dues, other homeowners will be getting an increase in dues to make up the difference needed.

The associations need to tighten their belts IMO. Ours changes the "colors" of the flowers every season. It irks me every time I see them pulling out thousands of perfectly good flowers and planting thousands of new flowers in their place.