HOA and Foreclosure

[bllyshrs]

If anyone has any insight on this it would be helpful.

I’m working on a Ch7, but haven’t filed yet. I have retained an attorney, but am waiting two months to get under the means test qualification.

That said, I haven’t paid mortgage payment in 12 months. I’m not too worried about the bank foreclosing in the next eight weeks, but what about HOA’s? I paid the condo fees up until about 90 days ago since I had heard they can foreclose much quicker than a bank. Lawyer recommended that I stop paying them and any other debtors since we can just put it on the Ch7.

However, this waiting period for the means test qualification is concerning me. I have heard of other who after filing stayed in their homes for 3-6 months, sometimes even after discharge and I was hoping to save some cash and do the same thing. I’m guessing that once we officially file Ch7 it will keep any foreclosure at bay, but I’m hearing that Florida a fast track foreclosure for HOA’s. Anyone else hear about this? Can they take away the house before the 341 meeting or prior to discharge?

[ryan]

In the past IL was one of the few states that had granted these HOA power to sue for EVICTION, not FC. Then the HOA under law could rent out the unit, and collect rents until the debt they were owed was paid (of course with fees, court costs, attorneys charges all rolled in as well.)....

I'm not aware what powers the HOA has in FL....probably is different. Also, CONDO HOA usually have different powers than single family HOA. SF HOA usually have a much harder time suing for FC or eviction and from what I've seen are far less likely to attempt it. If the lawyer recommended non-payment to HOA, I'd just verify that he is aware you don't want to move prematurely.

My guess, and it's only a guess, since I am not in FL, is that being behind a few months is not going to trigger a lawsuit that removes you from the property. You're probably going to need something like 6 months+ of nonpayment, and there may still be some speed bumps on the way to eviction/ FC.

[catleg]

See the article I posted in the News forum about HOA foreclosure scam opportunists in Florida.