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
Monica@MonicaAndKevin.com

Mon Jun 30 2008, 09:02

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.

Mon Jun 23 2008, 19:52

the HOA fees are a lien on the house. It comes out of the proceeds of the sale. Whoever the owner is.

Thu Jun 5 2008, 14:51

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.

Wed May 21 2008, 11:14

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.

Sat May 10 2008, 09:39