Foreclosure in 21842>Question Details

C, Home Buyer in kipp

Hello, We're buying a forclosed townhouse in OceanCity, MD. The HOA dues "maybe" past due, who pays them?

Asked by C, kipp Sat May 10, 2008

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the HOA fees are a lien on the house. It comes out of the proceeds of the sale. Whoever the owner is.
0 votes Thank Flag Link Thu Jun 5, 2008
You are mostly referring to the Condo Dues: typically the REO is responsibe. The Condo Association will not issue a "Resale Certificate" without prior notice of all delinquent accounts. Please be cautious about any upcoming Special Assessments. If only discussed, not voted upon, by the Condo Association, these expense(s) may not necessarily be disclosed.
2 votes Thank Flag Link Wed May 21, 2008
The bank will need to provide you with a clear title/ deed to the property you are purchasing. If there are any outstanding liens against the deed your title company handling the closing with be able to find them in the title search.

Maryland law states that you have the right to the condo documents prior to your purchase. This includes the resale certificate. This is prepared by a member of the BOD or the management company. It will state if the dues are outstanding. You should have your agent pass this on right away to your settlement attorney or title company so that they can get it on the settlement sheet for the bank to pay any portion they owe up until the day you take ownership.
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0 votes Thank Flag Link Thu Jul 7, 2011
To answer your question about the past due condo dues, the bank will need to pay these dues to be able to offer you a clear deed to the property. The title work that your attorney or title company will perform for you will find out all items that are against the title at that time.

It is best to work with a buyers agent who understands the distress sale market and how to best advice you through the process.

I myself am a certified short sale / foreclosure agent and will be more than happy to offer you my help in any way that I can, if you are interested in a purchase in either Maryland or Delaware beach areas.
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0 votes Thank Flag Link Thu Feb 17, 2011
Typically the lender will be paying all outstanding debt against the property to ensure you are offered the deed free and clear.
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0 votes Thank Flag Link Thu Apr 15, 2010
0 votes Thank Flag Link Tue Feb 23, 2010
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0 votes Thank Flag Link Thu Feb 4, 2010
In Ocean City you are predominantly referring to the Condominium Association dues that are past due from the current owner. I had a circumstance where the buyer was buying a foreclosed property and the position of the condo association was that the past due condo fees were an "uncollectable debt" from the owner, so the association was not pursuing the owner. The plan of the condo association, was to take the monies that were past due, and pro-rate them among the existing owners. Neither the lender, nor the new purchaser paid those past due fees. However, the new owner was paying a portion of them by having their condo dues increased to make up the short fall. Do your homework! Bank foreclosures and short sales can be very complicated, and quite time consuming. Work with a real estate professional that has had experience in dealing with these types of sales.

Monica McNamara
Coldwell Banker
0 votes Thank Flag Link Mon Jun 30, 2008
When you say foreclosed townhouse you are not saying whether you are buying a courthouse foreclosure or a bank owned REO. If you are buying a courthouse foreclosure read the terms of the ad. It is my understanding that foreclosure will wipe out any past due HOA/Condo dues prior to the sale date. If you are buying a bank owned REO the bank is like any other seller and they will have to provide you by law with HOA docs/resale package and the HOA dues should be prorated according to your contract so that everybody pays their fair share.
0 votes Thank Flag Link Mon Jun 23, 2008
The Title company should ensure that you pay for nothing before the day you actually take ownership. Either the bank will pay or the HOA will have to write off as a lose.
0 votes Thank Flag Link Sat May 10, 2008
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