Foreclosure in Portland>Question Details

Joe, Home Owner in Portland, OR

If I lose my condo in Oregon to foreclosure, do the past due HOA fees follow me or do they become the new owner's responsibility?

Asked by Joe, Portland, OR Tue Feb 22, 2011

I know the ones after would be theirs, but what about the unpaid ones from months before? Thanks

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8
Joe,
I would consult a real estate attorney about your liability. Once the bank forecloses, they take the responsibility for clearing the title to re-sell. I have had instances where the bank took all the obligations. However, there could be legal ramifications from the HOA. That's where consulting an attorney would be in your best interest. Good luck to you.
Janeese Jackson, Principal Broker
Real Estate Resource
Web Reference: http://fabulousportland.com
1 vote Thank Flag Link Tue Feb 22, 2011
Hi Joe,

I believe that you're responsible for the HOA dues while you're the owner of the condo. If there are any unpaid dues at the time of the foreclosure they become a lien against the property which will need to be paid in order to provide clear title to a new buyer. The bank foreclosing on the unit would have that responsibility as the owner of the property after the foreclosure. Hope that helps!

Steve Thoele, Principal Broker
Keller Williams Realty-Portland Premiere
1 vote Thank Flag Link Tue Feb 22, 2011
Many CC&R's state that HOA dues assessed prior to the date of Foreclosure or Deed in Lieu of Foreclosure are not the responsibility of the new owner.
Flag Wed Jul 25, 2012
Joe: In Nevada, they not only will follow you, but they become a proprity debt right behind the IRS, meaning they can't ever be forgiven if you file BK. It will effect your credit asnd your FICO score forever. I would call a BK attorney in Oregon, usually a free consult on the phone, and ask them how Oregon handles unpaid HOA in BK.

David Cooper Las Vegas Real Estate Investor in Bank Owned REOs with Cash Flow +1-7024997037
not a real estate agent
0 votes Thank Flag Link Tue Apr 12, 2011
Joe, my office had an attorney come and speak last week and he talked about this. The HOA debt will follow you I believe. You should speak to an attorney because this could be a very large amount of money and many sellers think the giving the condo back to the bank their problems go away. Good luck

Tom Inglesby, Broker
RE/MAX Equity Group
CDPE, ABR,CRS
Portland, Or 97239
0 votes Thank Flag Link Tue Apr 12, 2011
You should ask that question to an attorney. Although, you can do a short sale and we can negotiate the hoa fees down and pass a clear title. That way you won't owe any hoa fees after closing. Also, a short sale will keep foreclosure off your credit.

We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states
0 votes Thank Flag Link Tue Feb 22, 2011
Yes, check with a lawyer, but in most cases they follow you, their your debt not the next owner. The HOA will need their payments, so if you can't make them current, filing bankrupcty may be the only way to get out of paying them.

Best to you.

HLR
0 votes Thank Flag Link Tue Feb 22, 2011
Thats a great question Joe - It depends on how the loan is written. Your best bet is to talk with an attorney and CPA to find out for sure.
0 votes Thank Flag Link Tue Feb 22, 2011
Joe,

It is always good to consult a Real Estate attorney if you are facing a short sale or foreclosure. The HOA fees are the responsibility of the property owner. When/if the property is foreclosed upon the unpaid HOA dues follow the property. The bank/institution is than responsible for them; and in most cases they will bring them current before reselling the property. Hope that clears it up.

Good luck!
0 votes Thank Flag Link Tue Feb 22, 2011
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