Foreclosure in Mililani>Question Details

Honugirl, Other/Just Looking in Mililani, HI

Who is responsible for the delinquent maintenance fees on a condo when the condo is foreclosed or sold in a short sale?

Asked by Honugirl, Mililani, HI Sat Oct 9, 2010

Help the community by answering this question:


Scott's right, and if you are buying one of these condos make sure you are aware if you are expected to pay these BEFORE you get to the closing table. Bank addendums are a pain, and many of them state that you agree to their paperwork above and beyond anything you put down in your offer. This means that if you stated all delinquent fees be paid by the bank, and then signed their addendums, there is a good chance you will be paying for these fees. Your closing person can keep you posted on this to be fully aware. This is a fast growing problem, and usually when there is a problem with the bank it ends up being just your problem.
2 votes Thank Flag Link Sat Oct 9, 2010
Hi Hinugirl,

In Hawaii, it is sort of complicated. The HOA is guaranteed to get $3600 from the sale, through the bank or the homeowner. Any delinquent amount must be paid by the homeowner. If the owner is in a foreclosure or short sale, the HOA can go after the original homeowner with a deficiency judgment. If the bank owes HOA fees, the HOA can put a lien on them as well, and even foreclose on the bank.

Call me if you have more questions.

Frank Diaz (RA), MBA
Web Reference:
1 vote Thank Flag Link Sat Oct 9, 2010
Hi Honugirl. The HOA will try to get them paid by either the bank that's foreclosing....OR, the new buyer. The HOAs need the money to pay day-to-day bills such as landscaping, common electric/insurance, pool, repairs/painting exteriors.

This has become a nightmare issue down here in Florida. The HOAs are being extremely aggressive in filing liens, lawsuits and foreclosures against homeowners for back maintenance fees.


Scott Miller, Realty Associates, Boca Raton, FL
1 vote Thank Flag Link Sat Oct 9, 2010
Yes , that is true HOA will and can foreclose on delinquent fees and even hold up a sale . However , we are ( legislative bill 2011) working on changing the time line to deficiency judgement to allow more time not to interupt a sale or create an unecessary foreclosure . The best thing is to have a strong Realtor who can do a pre-lim and find exactly what is owed ahead of time to see if you want to negotiate with the HOA for payment or any other liens ahead of time , so not to waste your time on the search for dream home or investment property .
0 votes Thank Flag Link Fri Jan 21, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer