Foreclosure in Saint Paul>Question Details

Tockobelle1, Home Owner in Saint Paul, MN

Do I have to pay my Association Fees?

Asked by Tockobelle1, Saint Paul, MN Thu Mar 22, 2012

My bank would not work with me after my husband died so they bought it back. (Bank America that is in a law suit now) I have 4 more months before I have to be out. Do I still have to pay my association fees, or is it up to the bank. I am trying to save up some money to get into another place. I have not paid this month yet (March) and today the 22 I got a threatening letter. What do I do?

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In my experience with selling foreclosures in Ga, the bank or mortgager after taking possession will have to pay any unpaid HOA dues.
0 votes Thank Flag Link Thu Mar 22, 2012
Not sure about Ga but in MN and the majority of the other states the bank is only obligated to provide for six months worth of dues payments.
Flag Wed Apr 25, 2012
Does that mean at the end of my 6 months? Or when the final forclosure was? I hope that is true for Minnesota too.
Flag Thu Mar 22, 2012
Hello Tockobelle, If the bank bought the condo/town home back, and you are presently in the 6-month redemption period, you no longer have the responsibility to pay the association fees, taxes & insurance from the time that the bank bought the property back. As an interested third party, you may want to detail a letter/email copying both the bank and association on the "threatening" letter and the situation as you understand it. The association will eventually pursue legal action and has the right to foreclose for that debt. The bank will not allow that to happen, so it will eventually pay the association fee on a monthly basis, as they pay the taxes on a quarterly and hazard insurance on a annual basis.

As always, every situation is unique and it's always good to get legal counsel on your rights and responsibilities. Michael Emery has provided you two excellent resources for your to inquire for assistance in how to move forward.
1 vote Thank Flag Link Thu Mar 22, 2012
Thanks so much David.. Yes I will be calling Michaels resources tomorrow.
Flag Thu Mar 22, 2012
Is the association aware that your property is in foreclosure and you will be moving out at the end of the redemption period?

As I recall, under state law the bank that takes possession after foreclosure is obligated to pay 6 months of past due association dues. But you may be liable for any that are not covered under that law. It would depend on your association documents.

First step is to talk to the management company regarding your foreclosure. If they intend to pursue you for HOA fees, then you should talk to an attorney.
1 vote Thank Flag Link Thu Mar 22, 2012
You were right Michael. I broke down and called my bank and they said that they will be paying the Association fees after my redemption period. They said that was only if the bank bought it back and they did. Now I have to notify my association to let them know. Thanks again for your help.
Flag Fri Mar 23, 2012
I am not sure if the Ass is aware, I thought they were the first people to find out when a house is going to a sherriff sale. I have kept up with my fees up until this month because I do not know the laws of Minnesota. I can not afford to pay them anymore seeing that my husband left me any money or ins when he passed away. I have been keeping up on on my bills but now I need to save money to get into my apartment in June.. I was just hoping to find out where I am legally. I can't afford to be sued for the $800.00 I will be owing for not paying my last 4 months and I can not afford to get a lawyer to find out where I stand. Thank you Michael for answering my question, it has helped..
I have been trying to work something out with Bank America for the last 2 yrs but they kept saying they could not help me... I have a feeling they will just say pay the fees and suck it up. That is how nasty they were to me
signed hopeless
Flag Thu Mar 22, 2012
Once the bank takes possession they take over the fees the association will charge them.. http://www.mnhomescontractfordeed.com/washington-county
0 votes Thank Flag Link Thu May 10, 2012
I would save your money and have the bank pay them when they foreclose on your property.
http://www.mnhomescontractfordeed.com
0 votes Thank Flag Link Tue Apr 24, 2012
And we wonder why dues amounts are increasing. Whoever is in title should pay. It should not fall on the remaining association members to cover the cost for another unit despite the circumstances. I would think the snow is still getting shoveled the trash is being picked up, the lawn is being mowed and watered there is likely still insurance on the structure etc. And the board members are still working for free while trying to figure out how they are going to cover operating expenses while some members are not contributing.
Flag Wed Apr 25, 2012
Simply put- Morally. It really is a moral decision. Technically you could get out of it at this point, but if you feel you should pay it, then by all means pay it.
0 votes Thank Flag Link Fri Apr 20, 2012
You should be in contact with your association management and make sure they are aware that the bank is now in ownership, if they really are. Your association will check on this and you probably need to know what they say about their rights and how they interface with lenders or servicers in this situation. You do have resources. Find out what they are and how you can use them. There are also community action groups in some areas or through the county or local legal aid societies. If you have one, your personal banker might be able to help you, or go to the Ramsey County Service Center and they will know what is available. If I can help talk you through any elements, please feel free to call. Liz, 612-986-4105
0 votes Thank Flag Link Mon Mar 26, 2012
Whoever is in title to the property should pay the fees. "Law Suite"? If it is in redemption period the owner is still in title. If Redemption expired and the bank truly has it back, they should pay. If you are in redemption you are still in title until the end of the six months period. MN Statute requires the bank to pay back 6 months to cover the redemption period but they are not required until after they get the property back at the end of the redemption period.
0 votes Thank Flag Link Mon Mar 26, 2012
I called my bank and they told me they bought the house back from the Sherriff sale and they will pay the association fees at the end of my redemption and I do not have to pay them anymore. my redemption is up June 30th.
Flag Mon Mar 26, 2012
If you have been current on your association dues, chances are you can contact and work with the HOA to determine the best course of action. Your association needs to be informed that the property has been taken over by the lender and is in the state mandated 6 months redemption period. Since you are not planning to redeem the property. tell the association. They then have some options that would make sense for the association and you. Liz, 612-986-4105
0 votes Thank Flag Link Thu Mar 22, 2012
Talk to the management company tomorrow. I would be they're not aware that you are going through foreclosure.

Also call Lutheran Social Services @ 1-800-777-7419. This is a no cost service and they have an office in downtown Saint Paul. They specifically help folks in foreclosure situations.

You could also try Senior Linkage Line (I believe if you're over 50) @ 1-800-333-2433. This is a non profit referral to various state and non profit agencies.
0 votes Thank Flag Link Thu Mar 22, 2012
These are all good places http://www.hocmn.org/en/foreclosurePrevention-map.cfm I usually point homeowners to the Minnesota Home Ownership Center, because they have so much material on our foreclosure laws that are very easy to read, and you can either call them directly, or the link I attached is for locations where you can speak with a counselor. I do know of Lutheran Social Services Michael and nothing but great things to say about them. I have never worked with Senior Linkage Line though.
Flag Fri Mar 23, 2012
Thanks Michael, I will call them tomorrow
Flag Thu Mar 22, 2012
I am not sure if the Ass is aware, I thought they were the first people to find out when a house is going to a sherriff sale. I have kept up with my fees up until this month because I do not know the laws of Minnesota. I can not afford to pay them anymore seeing that my husband left me any money or ins when he passed away. I have been keeping up on on my bills but now I need to save money to get into my apartment in June.. I was just hoping to find out where I am legally. I can't afford to be sued for the $800.00 I will be owing for not paying my last 4 months and I can not afford to get a lawyer to find out where I stand. Thank you Michael for answering my question, it has helped.. I have been trying to work something out with Bank America for the last 2 yrs but they kept saying they could not help me... I have a feeling they will just say pay the fees and suck it up. That is how nasty they were to me signed hopeless
0 votes Thank Flag Link Thu Mar 22, 2012
You don't have to pay the association fees at this time they will stay with the property and the lender will have to take care of it. It does not attach to you...very common issue when buying REO TH's
Flag Fri Mar 23, 2012
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