Foreclosure in McKinney>Question Details

Drewdon30, Other/Just Looking in McKinney, TX

My HOA refused to respond to multiple emails or phone calls, foreclosued on my home, then advised my tenant to stop paying after I paid my account.

Asked by Drewdon30, McKinney, TX Tue Dec 15, 2009

My HOA recently foreclosued on my home, however on the date of the foreclosure I sent them a check for the amount due in full $1,350. The next day thePresident of the HOA went by the home and advised my tenant to not pay rent which my tenant agreed to do. Is this legal for him to do?

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Answers

5
It might have been easier to attend the auction on 12/1 and buy the deed directly. That would have assured they did not have a claim on the property. The foreclosure itself takes precedence over your payment to the HOA. You would have had to pay in cash before 10 AM on 12/1 in order to state that you paid in full prior to foreclosure.

Now you're not in a good position since they have clouded your title. HOA did take title from you but you can redeem your indebtedness now and get title back. The clock is ticking. Contact them and ask how much more to get title back. It is doubtful that the original $1350 will cover the new amount due after foreclosure.

As to collecting rents, the owner has a right to collect rent from someone living on the property. The question is after foreclosure, who owns the property - you or the HOA? Would it make sense for the "new owner" to tell the tenant not to pay rent at all? No, but he might have been told not to pay you (the ex-owner) but to pay the HOA (the new owner).

Damages caused by action of others can be claimed in Justice of the Peace Court, but you have to have evidence of the damage and that you tried to mitigate the loss. First, get title back. Call an attorney and discuss your problem.

The HOA is probably painfully ignorant of the fact that the property can encumbered with your mortgage lien. You can still pay it each month even though technically they own it. If no one pays it, the mortgage company will foreclose the HOA. Too bad, so sad. Often HOAs think they get the property free and clear. They don't. Besides taxes already due and those that will become due, the foreclosed property has all superior liens still attached. Normally, the first and second mortgage are excluded from the HOA's claim of priority by a subordination clause in the covenants. Ask your attorney what you should do.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Wed Dec 16, 2009
Probably. But talking to us isn't going to get you very far, call that lawyer NOW.
0 votes Thank Flag Link Tue Dec 15, 2009
Call the title company where you closed on the home and ask them to refer you to a lawyer who specializes in Texas real estate law. You need legal guidance now.
Ronda



Ronda Allen, Realtor and Certified Purchasing Manager
CEO of comingsoonhomes.com
RE/MAX Dallas Suburbs
0 votes Thank Flag Link Tue Dec 15, 2009
Definitely talk to an attorney about this one...
0 votes Thank Flag Link Tue Dec 15, 2009
You should probably hire a lawyer.
0 votes Thank Flag Link Tue Dec 15, 2009
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