If no one pays the HOA, they can (and most of them will) take you to small claims court - even after foreclosure. Have you tried doing a short sale? This may be a better option for you than foreclosure.
I have the benefit of working for a real estate attorney.
You may want to contact the hoa and see if it could be settled.
Have you considered a short sale?
If you do not want to keep your home a short sale may be the best thing to do. You may be able to negotiate settlement of the HOA with short sale proceeds. Or as a law firm we can settle unsecured debt out side of bankruptcy.
Things to consider: after a foreclosure you may have to wait 3 years before buying a home (FHA guidelines) after a short sale 2 years depending on hardship and curcumstances. .
If you want to keep the home lenders are working on programs that actually have principal reductions.
We just obtained two with Chase, on a 38% principal forbearance and a $60,000 principal reduction plus additional incentive if they stay current each year for 5 years.
Best of luck
Legal Assistant / Realtor
925 699 5041
For my clients who need the advice of a real estate attorney I suggest Robert Jacobs 925-847-8680 or Phillip Vermont 925-460-3700. Both have lots of experience in the area in which you need advice.
Good luck. Way too many homeowners are in a similar situation these days.
Your best bet is to seek the opinion of an attorney to advise you on the HOA and foreclosure matters. I have heard mixed legal opinions from lawyers regarding HOA assessments so pick a pony ant takehim to the race. The consequences can be serious and will affect you for a long time.
I agree with others that a short sale may be advisable.
All the best as you determine the best course of action for resolving your situation.
I would advise you to consult a real estate attorney to find out the best solution. I have found that most banks in California do not respond to deeds in lieu. A short sale may be a good alternative and many of us are experienced in doing them. Speak with a realtor to examine this alternative and to get the process in motion before it goes to foreclosure.
Good luck to you,
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.