Foreclosure in 94538>Question Details

Pokie, Home Owner in 94538

Do I have to pay overdue HOA dues for a condo foreclosed in Aug 2011. I walked away from my condo in April 2009.

Asked by Pokie, 94538 Mon Oct 24, 2011

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7
Carl Medford’s answer
Pokie:

There is a growing concern about this topic as many HOAs in the area are beginning to aggressively pursue delinquent fees to dig themselves out of the financial holes they been dragged into as a result of rampant delinquencies result from short sales and foreclosures.

The standard line of thinking to this point has been that delinquent HOA fees were wiped out by a foreclosure and/or were paid off by the foreclosing bank. In reality, that may not actually be the case in some cases.

The motive behind the current aggressive actions by HOAs comes from the fact that, in many developments, the HOA required a written personal guarantee IN ADDITION TO the ability to slap a lien on a property with delinquent fees. While the lien is wiped out during a foreclosure, the thinking is that the personal guarantee is NOT. Desperate to stay afloat, HOAs are therefore sending out delinquency notices and trying to collect.

Although we can conjecture the cause for the current situation, we cannot provide a remedy in this forum. This is a topic to be handled by a real estate attorney – only they can make a legal determination of your responsibility to pay or other courses of action.
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2 votes Thank Flag Link Tue Oct 25, 2011
I'm throwing this question since talk of Foreclosures. If an Association in the By Laws/Condo docs state NO SIGNS Allowed on your windows, do Bank owned properties also have to follow the same. They slap on their signs and those also of their 'maintenance' company and no one stops them. They now OWN the foreclosed property and I feel should be held responsible to do as every owner in the complex. Anyone know of this being so? Thanks
Flag Wed Feb 18, 2015
I would suggest talking to (and paying for) a real estate attorney regarding the liability between the time you "walked away from my condo in April 2009" and the "condo foreclosed in Aug 2011".
0 votes Thank Flag Link Tue Oct 25, 2011
I've heard and seen some pretty interesting in this arena. I've seen clients and folks that I know be chased around for years even after a BK.
0 votes Thank Flag Link Tue Oct 25, 2011
Chances are the HOA never amended their bylaws to reflect such a situation. The only way I'm aware of for an HOA to come after you for a delinquent debt after foreclosure is when you bought the condo, you had to agree to the HOA docs, if it does'nt state anywhere that your'e responsible you're clear, but if for some reason the bylaws were changed after the fact, or very specific verbiage is included in the docs you very well may be responsible. But any real estate attorney would be able to confirm.
0 votes Thank Flag Link Tue Oct 25, 2011
It would be unlikely that you will have to pay. Standard practice is for the bank to pay the delinquent HOA prior to reselling the property to someone else.
0 votes Thank Flag Link Mon Oct 24, 2011
Pokie:

Your situation regarding delinquent HOA fees potentially involves a legal review based on facts; however, I suggest you review the following post:

http://www.trulia.com/voices/Foreclosure/I_owned_a_condo_tha…

-Steve
0 votes Thank Flag Link Mon Oct 24, 2011
No. The HOA dues are the banks problem now they own the condo.
Web Reference: http://a1realtyinc.com/
0 votes Thank Flag Link Mon Oct 24, 2011
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