When can I stop paying HOA?

[jjones227]

I surrendered my house in chapter 7 last year, I moved out of the house before filing. As advised by my attorney, I continue to pay HOA dues. The foreclosure proceedings have begun and there is a sale date in a couple of weeks. When can I stop paying HOA dues?

[despritfreya]

When can I stop paying HOA dues?

You should continue to pay the HOA until the foreclosure is completed and the property is no longer in your name.

Des.

[tobee43]

as des points out, that is a wise thing to do...as many will add costs and fees that will really add up quickly. best to keep up to date with the HOA's.

[Miknan]

Just to clarify... Continue to pay HOA and maintain yard until day after the sale or until the end of the redemption period? I'm in a similar situation but will move out a month or two into my 6 month redemption period.

[metoo]

When the deed transfers, stop paying.

[HHM]

The answer very much depends on state law.

But, the most conservative advice is that you stop paying when deed transfers.

So, if there is a possessory right of redemption (meaning, the homeowner has the right to stay in the house during the redemption period, and title does not pass until the end of the redemption period) then you continue to pay until the redemption period expires.

Must you pay? Not really. You just need to understand the situation. Bankruptcy does not discharge your post filing HOA dues that come due (after the BK is filed). As such, the deeded owner of the property is still liable for those HOA dues. Now, in a foreclosure scenario, once the property forecloses, the lender assumes responsibility for the dues. In the end, HOA dues are tied to the land, not the person. So, you don't really need to pay the dues if your intent is to surrender the home. HOWEVER, the HOA can come after you in the mean time, and if foreclosure takes a long time in your state, and assuming state law permits it, the HOA can pursue you personally for those post BK HOA dues. But once foreclosure occurs (deed transfers) the foreclosing bank must/will pay the HOA some amount (in many states, the bank need only pay up to 6 months worth).