Need Advice on HOA collections Letter

[Amy26]

I just received a certified letter from a law firm about my HOA dues. Been a year since I paid my mortgage last and I still haven't even gotten a default letter.

I wrote a letter to my HOA in December 09 telling them about my situation and requesting that I be allowed to pay 50 dollars a month to them (the dues were like 265) until I was able to settle the account. They ignored this letter and in January of 2010, the association changed to a new association. I sent emails to the old company asking about the status of my account and she said it everything was being handled by the new company.

I have been making small payments to them every month. But apparently they don't like that too much! lol.

Letter basically says I owe them 800 dollars + 225 in legal fees. Says they will put a lein on my property and the whole collections on my credit report thing...

Says I can dispute the validity of the debt within 30 days...but like... I know its my debt! I just can't afford it. I was very annoyed they ignored my letters and requests for payments ...

So, how do I proceed? Any advice? Do I let them put a lien on the property and just deal with the nasty collection that will go on my credit report? Do I ask them to continue to let me make payments until the stupid bank gets their shit together?

Is there any way I check the status of my foreclosure? Or try to get them to speed it up?

[DeadManCrawling]

It sounds like you plan to let the house foreclose?

What lender? Loan amounts? Mortgage amount? Is the property in VA?

There isn't any legal method to speed up foreclosure, for most people. There is a brand new court decision in South Florida, but that is so new no one really knows what it means yet, and it would not necessarily mean anything everywhere else.

I am dealing with the same issue with BoA, and they seem completely uninterested in taking our house back. We have not paid in 14 months or so, and have continued to pay the HOA fees since BK.

The HOA's have an enormous amount of power over you and I. Ridiculous power, in fact. They can lien the house, but probably won't foreclose, if you are underwater. They can also sue you personally, in most states, and can be the nastiest creditor in the world. I, personally, resolved to never again live within the confines of a HOA and bought our new house in an area without HOA's. They are the work of the devil, in my estimation.

Not much you can do, really. It is like trying to battle the IRS or the government.

As far as what to do? Well, you will probably eventually HAVE to pay them. And later the fees for attorneys will be racked up higher.

[Amy26]

Well yes I want the house to foreclose... it was let go in my bankruptcy. Loans are gone.

I don't want to NOT pay the bill... I just can't afford to pay the entire thing and the new months that keep accumulating. I was trying to make payments to them and had sent a letter requesting such which they ignored.

They even have all my payments listed on the accounting sheet...

So, my question is still: how do I respond? What do I do? Do I ignore the letter? Do I write them a letter? Do I try to make arrangements with the law firm? Any guidance? Its now ruined my day.... lol. Do I let them do the lien? Do I let them sue me?

[DeadManCrawling]

Amy,

I can't suggest what to do. I am dealing with the same questions myself, on some other HOA issues and haven't found a clear answer yet. There is a new law, passed last summer, that seems to put lenders on the hook for up to a year or 1 percent of the HOA dues. But I have not yet seen it interpreted in a fashion that makes any sense. I am not sure if the lender is held liable before or after foreclosure, and whether that negates our responsibility. This law passed and seems to have been completely vague in how to use it.

I would probably let them put a lien on the place and hope they do not sue you personally. They can do both, though. The best outcome would be negotiating with the HOA itself, but they rarely do that. And their attorneys are often glorified collection agencies with an attorney's letterhead to look intimidating. I've dealt with them in the past, and they are mostly interested in continuing to rack up legal fees. That is how they make a living, so they do it. The only way we recovered from our misadventure with a HOA for my son's property was to pay the attorney in full. The fee missed was $180.00. By the time we were sued, the fees totaled $1,700.00, a year later.

We are caught in the middle, all of us in this situation, and it feels like we are getting screwed by everyone. I am sorry I cannot offer any more constructive thoughts.

[jacko]

Welcome to the club. I am in a similar position. Last year, my folks were covering my mortgage payments due to job loss. Having difficulties in paying my monthly HOA fees on time. The Association changed the late fee policy from $20 after 30 days of non payment to $50 if not paid by the 15th of each month. So I was racking up the late fees plus the lawyer/collection fees which irked me. Condo Associations in general due not accommodate if peoples financial circumstances change. Their accommodation was current month plus $85 per month until catchup and they would avoid the attorney fee, but the late fees would stand. I could of paid up to half per month with a recurring balance until my circumstances change. But the Association would not agree to it. As a result, I called my folks to pull the plug on the mortgage payments to let it go. Has been 14 months since I last paid the HOA fees. The auction for my condo has been postponed twice already. Been living rent free for a year thus far. The Association will eat hundreds in lawyer fees and thousands in association dues. I am collection proof and have blown off two small claims dates. The judgment are not enforceable unless the Association pursues it in formal court, but that would incur court and legal fees.

I just received a certified letter from a law firm about my HOA dues. Been a year since I paid my mortgage last and I still haven't even gotten a default letter.

I wrote a letter to my HOA in December 09 telling them about my situation and requesting that I be allowed to pay 50 dollars a month to them (the dues were like 265) until I was able to settle the account. They ignored this letter and in January of 2010, the association changed to a new association. I sent emails to the old company asking about the status of my account and she said it everything was being handled by the new company.

I have been making small payments to them every month. But apparently they don't like that too much! lol.

Letter basically says I owe them 800 dollars + 225 in legal fees. Says they will put a lein on my property and the whole collections on my credit report thing...

Says I can dispute the validity of the debt within 30 days...but like... I know its my debt! I just can't afford it. I was very annoyed they ignored my letters and requests for payments ...

So, how do I proceed? Any advice? Do I let them put a lien on the property and just deal with the nasty collection that will go on my credit report? Do I ask them to continue to let me make payments until the stupid bank gets their shit together?

Is there any way I check the status of my foreclosure? Or try to get them to speed it up?

[Amy26]

Hmmm.... so where should I turn for what I should do? I suppose I could steal money from our HSA medical account to cover the back dues but I'm still going to end up in the hole every month after not being able to pay the dues in full going forward.

You would think they would allow me to just make payments... and it pisses me off cause the fricken place is empty. I'm not using any resources there and not taking part in anything my dues pay for.

Is there any point to doing what they say about writing them back and questioning the validity of the debt?

[jacko]

Amy, you need to stop feeling guilty. They would not accommodate you as a owner of your residence which does not count much now a days. I would preserve your cash and take pro active steps to protect it.

In my case, I treat my HOA like I do with my other creditors. Its a dog eat dog world. Do whats best for you and not worry about others in the HOA. Anyone who joins a HOA, are doing at their own financial risk.

Any payment made, even a partial restarts the clock on the statue of limitations. Its been 14 months for me and will not make a payment unless satisfactory to my interest.

Hmmm.... so where should I turn for what I should do? I suppose I could steal money from our HSA medical account to cover the back dues but I'm still going to end up in the hole every month after not being able to pay the dues in full going forward.

You would think they would allow me to just make payments... and it pisses me off cause the fricken place is empty. I'm not using any resources there and not taking part in anything my dues pay for.

Is there any point to doing what they say about writing them back and questioning the validity of the debt?

[ryan]

I was recently faced with a similar situation....I am in the property which is being foreclosed and want to remain there as long as possible. HOA dues were way behind, like 6 months+. HOA in my state are granted enormous powers to evict home owners who don't pay the dues. The homeowner would still own the house just not be able to occupy it!

Had a local atty tell me to pay the dues as he'd recently seen owners evicted long before the mortgage company could have foreclosed and evicted. ...so I did, which wasn't easy money-wise.

However, in your case, since you are not occupying the house, eviction wouldn't come into play. BUT, from what I understand the HOA can come after you for the delinquent dues until the house is resold and the lender pays them off to be able to convey clear title to the new buyer.

[jacko]

What state do you reside in? I live in the midwest as well.

I was recently faced with a similar situation....I am in the property which is being foreclosed and want to remain there as long as possible. HOA dues were way behind, like 6 months+. HOA in my state are granted enormous powers to evict home owners who don't pay the dues. The homeowner would still own the house just not be able to occupy it!

Had a local atty tell me to pay the dues as he'd recently seen owners evicted long before the mortgage company could have foreclosed and evicted. ...so I did, which wasn't easy money-wise.

However, in your case, since you are not occupying the house, eviction wouldn't come into play. BUT, from what I understand the HOA can come after you for the delinquent dues until the house is resold and the lender pays them off to be able to convey clear title to the new buyer.

[ryan]

What state do you reside in? I live in the midwest as well.

Illinois.

[Amy26]

How would I find out my state's HOA laws?

I am wondering if it would be beneficial to write the law firm and ask them if I could make payments? Is it an all or nothing type of thing with them?

I'm really confused and I know people say "do what you feel is the right thing"...but I really need someone to tell me what to do... lol. I have no idea what it would do to me if they put a lien on the house... do I care? Then what would be the odds of them suing me? And if you get sued...what happens?

Is this something I should ask a bankruptcy attorney?

[jacko]

I live in Minnesota. If my condo had equity in it, they would of foreclosed on my
unit by now. Thus far, the auction has been postponed twice and the next one is scheduled next month. If it proceeds with auction sale, have a 6 month redemption period. Just want to be over with this. Have yet to hear others being evicted for non payment of HOA fees.

Illinois.

[jacko]

I would not bother at this point. They had their chance to compromise. You should use the time to plan your exit into a affordable rental when the time comes. Get your affairs in order.

Also, your statue of limitations began when you last paid the HOA fees. Do not restart the clock with a token payment.

How would I find out my state's HOA laws?

I am wondering if it would be beneficial to write the law firm and ask them if I could make payments? Is it an all or nothing type of thing with them?

I'm really confused and I know people say "do what you feel is the right thing"...but I really need someone to tell me what to do... lol. I have no idea what it would do to me if they put a lien on the house... do I care? Then what would be the odds of them suing me? And if you get sued...what happens?

Is this something I should ask a bankruptcy attorney?

[Amy26]

I'm already in a rental... I haven't lived in the home in over a year. My affairs are in order... I just can't pay these fees. I also have started rebuilding my credit so I really don't want them to put it on my credit... :/ *uggg* I am so confused ><

[BROKEDED]

I'm the President of our HOA. Which is gonna be a riot (haha) when we file Ch7. We had a home in our neighborhood that was "abandoned". The dues and late fees mounted, we placed the lien and eventually a foreclosure but never pursued the owners. Where I live it's basically whoever files the foreclosure first wins so to speak.

The HOA wasn't interested in going after the owners but just simply securing our place in line. The lender could have technically foreclosed on us but the outstanding balance was something like $2700 so it was easier for the bank to simply pay us off and we quick claimed the property back to the bank. Had the HOA spent alot of money on legal fees and placing the lien but the bank got to foreclosure first, the HOA would have had to eaten the loss.

The truely idiotic part of this is that the bank then QC'd the property back to the owners and it is now about to go back into foreclosure by guess who?