I have dealt with this issue quite a bit as President of an HOA, and as a real estate broker working with foreclosed properties and short sale properties. As I said previously, Washington is NOT a "Super Lien" state, which means that the laws of Washington only give HOA's limited powers to recover 6 months of back dues in these cases. In a bankruptcy all debts are wiped out and if it involves a home that a bank has foreclosed on and taken back and sold at auction then those fees are wiped out. In a short sale the banks will not cover these fees usually, but the law gives the HOA the legal right to recover up to 6 months of back dues. If the HOA has put a lien on the house someone will have to approach the HOA and get them to voluntarily remove the liens, usually for some sort of monetary concession, like the equilivant of 6 months back dues. But, you should check with an attorney because your situation may be different..
NY state Associate Broker
Keller Williams Landmark II
All of these answers can apply. Ownership to a property that has an HOA attached always is attached to the property in question. So it's rather tough to really have an exact answer to this without knowing all the details. However, I would talk to the Pres of the HOA, consult an attorney since they may give you some quick free advice on the matter....Always a good idea. Good luck. That's a very good question.
Coldwell Banker United Brokers
Jean Bradford, SFR, CRS, GRI,ABR,CRB
Managing Broker Associate,
John L. Scott
The answer to your question would depend in part on the age of the condo, because some condos were formed under older Washington statutes. But I do believe for any condo the answer below is correct--that if the bank actually owns the unit at this time, they are responsible for paying the dues, and they will have to be paid before they close any sale of the condo. I did run into one association manager who told me of a bank that was constantly paying their dues one month late, with the late fee which was significant! Banks are just slow at a lot of things.
Buy a home after foreclosure expert
Revolutionizing the Real Estate and Mortgage Markets