Question about HOA fees

[phsunny]

Hi gang, I am hoping someone can give me some insight into this......we've gone through a Chapter 7 and an impending foreclosure and obviously the damage has been and will be done to our credit, so my question is this.....why should we care if the neighborhood gets a judgement against us for $1200 in HOA fees? Am I missing something? Thanks!

[tobee43]

are you still living in the house? most HOA can and will pursue you for costs AFTER the close and any accumulating fees, dues and costs AFTER the close and dishcarge of your case.

i'm not certain about the HOA laws in MO, but here in FL, an HOA it's rather cut and dry, since HOA liens are what they call "superliens," they can take your property without paying your mortgage off. essentially, the bank could lose what they paid out for you to buy the house. banks often pay off the HOA lien and add it to your mortgage OR demand payment and then THEY foreclose. which they are apparently doing anyway in your case. i would just find out what the HOA laws are in MO. i know here since i work with a few HOA, we pass on to the bank and existing fees, costs etc., and we don't go after the previous owners.

if you have a judgment though, i would also see about asking your atty if you have to file a motion to vacate that judgement against you, if it does, in fact exist.

[phsunny]

Thanks for your response.....we are out of the home.

are you still living in the house? most HOA can and will pursue you for costs AFTER the close and any accumulating fees, dues and costs AFTER the close and dishcarge of your case.

i'm not certain about the HOA laws in MO, but here in FL, an HOA it's rather cut and dry, since HOA liens are what they call "superliens," they can take your property without paying your mortgage off. essentially, the bank could lose what they paid out for you to buy the house. banks often pay off the HOA lien and add it to your mortgage OR demand payment and then THEY foreclose. which they are apparently doing anyway in your case. i would just find out what the HOA laws are in MO. i know here since i work with a few HOA, we pass on to the bank and existing fees, costs etc., and we don't go after the previous owners.

if you have a judgment though, i would also see about asking your atty if you have to file a motion to vacate that judgement against you, if it does, in fact exist.

The home is listed in "pre foreclosure" right now. Makes me wonder though.......the Trustees just recently turned the paperwork over to the lawyer and we have not yet received any correspondence from them directly. Do you think that the lawyers will give us say 30 days to respond? That could buy us more time to get the Wells Fargo foreclosure further along the line....just thinking. I suppose we could get legal council on this but funds are really tight - I'm not sure we can afford to take that route - especially if getting a judgement against us does not matter. In the past our indentures stated that a lien would be placed on the property, but apparently the current indentures state that the owners are personally liable. Do you think that helps or hurts the situation? Thanks.

[tobee43]

the way it's been working here, ( and i would still check with your bk atty, they deal with this all the time and should have discussed it with you so they shouldn't charge you anymore), is that once the house has the lien, the bank cannot get clear title ( to be able to resale the house), unless that lien is settled.

in most cases the bank will pay off the lien, because that is the ONLY way they can transfer the deed to a new owner. the banks HERE at least, that i have experienced, have been passing on the costs either to the new owners or eating it.

once again, it will depend on MO HOA laws, and for that matter your old HOA and how they chose to handle these type of situations. when you really think about it, it makes no sense whatsoever for an HOA to after an insolvent previous owner, although not unheard of. IMO...humble as it may be, and hopefully someone else may clime in, but i think you should be alright.

[phsunny]

Thanks for your thoughts. I will call our BK lawyer to inquire, but I see what you are saying in regard to pursuing insolvent owners and actually, you touched on what I was thinking in my original post. Thanks again! If anyone else wants to chime in.....please do!!

[tobee43]

very welcome! and maybe someone that actually went through it know. i just can give you the side of the experience i have, which is handling those HOA situations for our HOA.

[stanpendula]

almost 3 months later I'm answering this ...

I went through it and I paid almost every penny I owed HOA. I'm saying "almost" because they slapped me with interest and late fees. I spoke with my new attorney (this is another story) and she told me to pay due to the "superpowers" HOA has. My property is abandoned, but because my name is still on the lien I am still responsible. The HOA goddess was in a good mood and we agreed on a payment plan and if I pay as agreed, then the fees and interest will be wiped out.

I filed at the end of February -- the 1st 2 months were included in Ch 7, the rest was prorated and billed in July, after discharge, with interest and all.

I wish I'd knew this BEFORE filing because it was so easy to pay at the beginning of the year.

[tobee43]

almost 3 months later I'm answering this ...

I went through it and I paid almost every penny I owed HOA. I'm saying "almost" because they slapped me with interest and late fees. I spoke with my new attorney (this is another story) and she told me to pay due to the "superpowers" HOA has. My property is abandoned, but because my name is still on the lien I am still responsible. The HOA goddess was in a good mood and we agreed on a payment plan and if I pay as agreed, then the fees and interest will be wiped out.

I filed at the end of February -- the 1st 2 months were included in Ch 7, the rest was prorated and billed in July, after discharge, with interest and all.

I wish I'd knew this BEFORE filing because it was so easy to pay at the beginning of the year.

and your experience is similar to so many others. those "superpower" laws protecting the HOA's in many states are very firm. however, each HOA can do what they really want or enforce what they chose to when the time comes. i know many that keep billing and then sue the old owners and garnish wages etc. also, the fees, and interests build up quickly!