One of the biggest mistakes a real estate agent can make is trying to offer advice on legal or tax issues. You really should contact a good real estate attorney in regards to your situation.
Best of luck and sorry for your circumstance.
Is it true that if someone buys the property, in order to clear the title of HOA fees owed, that the bank (since the property is owned by the bank now) would need to pay these fees? If so, it is a race for time between us and the bank finding a buyer.
I don't understand why you were unable to do a short sale? I have never had a lender tell me they would not allow a short sale...frankly, if it's a reasonable offer, it saves the lender time and trouble to allow us to handle it for them. The HOA will be handled in the short sale also. If the lender does not pay for it...then we make sure the buyer is prepared and ask them to pay it up front.
I would be happy to speak with you in private on this.....if you like. You can email me directly or call me. Maybe we can work something out for you.
Please feel free to contact me if you're interested in doing something creative, because I might be interested in the property.
If the HOA has their attorneys contacting you, I would reccommend you to contact a Real Estate Attorney for advise. They would be able to give you the correct advise for your particular situation and can advise you what you can do and what to expect. How else can I help you? Ingrid Ski Realtor
(For $6000 they should have just gone to small claims court. It kind of sounds like the HOA lawyers are just milking the HOA for their fees!)
Your best bet was to do a short sale http://(www.shortsaleapp.com), but if the property was foreclosed by the bank then your next best bet is to negociate with the HOA's Attorney directly. They may be able to put you on a payment plan. The worst case senerio is that they win a judgement against you, now let them try to collect. If you have no or little money then they have little or no options. They can garnish your wages or look for some money you have somewhere else. Seek the advise of an attorney, but that will cost some money as well.