Foreclosure in Hayward>Question Details

sara, Home Buyer in San Ramon, CA

We stopped paying our HOA when we put our house on Short Sale which eventually got foreclosed. We ended up owing $6000 in HOA. Can they go after/sue?

Asked by sara, San Ramon, CA Tue Feb 19, 2013

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Yes, they can come after you, and what would probably happen is that they will sell it to a collection agency for a fraction of the six and the collection agency will tack on charges on top of that.

As a practical matter, the HOA is going to get six months of delinquent dues from the new buyer, because they have a statutory lien (agents, correct me if I'm wrong here - but it seems like this is true in every state of the union) for six months worth of dues.

If it goes to foreclosure and doesn't sell, the bank/servicer/whoever frequently corrects the delinquency and brings the account current, which would take you off of the hook.

So. You owe $6000. You may get bailed out of some or most of it, but if you aren't bailed out of all of it, it will go to collections and they will hunt you down for . . . some period of time.

All the best,
0 votes Thank Flag Link Wed Feb 20, 2013
We are not in a position to give you an accurate answer. We do not know what rules that you were living under in the community in which you lived. If you have copies of the HOA documents that set out the rules and responsibilities of owners in your former community you may be able to find the answer within the documents. In many HOAs, the payment of HOA dues is a personal obligation that does not attach only to the unit. In other words, if you owe money to the HOA foreclosure may not wipe out your personal obligation.

If you cannot find a clear answer in the documentation or if you do not have the HOA docs I, too, suggest that you seek legal counsel. That is obviously true if the HOA is trying to collect from you.
0 votes Thank Flag Link Wed Feb 20, 2013
Hello I agree with my colleagues. You should consult an attorney. I have a good referral Mr Timothy Williams here in Walnut Creek he's good! He will probally give you a free consult. To add, most of the time HOA will place a lien and begin FC proceedings themselves! And if the bank beats them to the FC they will normally get paid anyway because they are the HOA for the development in which you lived. Call Tim he's a good attorney! Hell be able to answer your questions from a lefL perspective! Wishing you the best!
0 votes Thank Flag Link Tue Feb 19, 2013
Probably! You owe them money! As others have suggested, you need help. For your sake, consult with an attorney! Good luck.
0 votes Thank Flag Link Tue Feb 19, 2013
Hi sara,

You should contact a Real Estate Attorney to see if they can take you to court.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Tue Feb 19, 2013
You probably should engage an attorney to help you figure this out.

One of the things we advise our short sale clients not to do is to stop paying for HOA dues and insurance. it makes it extremely difficult to do a short sale with such liens. Furthermore, HOAs can sue and sometimes foreclose just like any other lien holder can.

When your home was foreclosed, it may or may not have resulted in settling all liens against the property. But get your real estate attorney to determine what you can do to protect yourselves from further obligations on the property you no longer own.
0 votes Thank Flag Link Tue Feb 19, 2013
You need to call a Lawyer!
0 votes Thank Flag Link Tue Feb 19, 2013
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