Do I have to pay my hoa while in foreclosure?

Asked by Hardman, Colorado Springs, CO Sun Apr 22, 2012

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Todd Spiller, Agent, Fort Collins, CO
Mon Apr 23, 2012
Homeowners who do not pay dues are not paying a fair share of the Association's costs and thereby place an additional burden for those expenses on their neighbors. The Association will be paid outstanding dues at closing on short sales and in the case of a trustees sale will only collect 6 months dues as a super lien holder. Non payment of dues can generate additional fees and penalties. Associations may also foreclose on a lien for dues, penalties and costs. Please contact the Association's representative, your lender and attorney to better understand your rights and obligations. Consider your moral as well as you legal obligations.
2 votes
J, Agent, Greensboro, NC
Mon Apr 23, 2012
I think the bigger question is can you legitimately afford to pay the HOA dues? Some folks, although in foreclosure, will continue to pay what they can and this may be paid in full or partial payments. In my neck of the woods, HOA's will work with folks experiencing true hardships. However, there are those who will not take 5 minutes to call their association or property management company to discuss options. Consequences of defaulting on HOA dues vary from state to state. Be smart, do your home work and learn your options. Seeking credible advice is a great start, however, do not rely on individual opinions as a framework to determine direction when it comes to your money and situation. Good luck to you!
1 vote
Brian L. A.…, Agent, Colorado Springs, CO
Sun Apr 22, 2012
While I can tell you that there are legal consequences to not paying an HOA. Real Estate License Holders in Colorado are prohibited from giving legal advice unless they are also an Attorney. .

You may have aternatives to a foreclosure and as a Realtor certified as a Short Sale and Forclosure Resource by the National Association of Realtors I would be happy to discuss your alternatives with you.

One of those may be a short sale and I can tell you that since 2006 I have a 98% success rate negotiating short sale payoffs for my clients having had only 1 short sale negotiation fail a few years back due to the lenders unwillingness to negotiate on the property. Almost all lenders are willign to negotiate these days to some extent and while there are credit and tax issues you should discuss with your accountant, a negotiated short sale is almost always a better solution for you than a foreclosure.

Explore your alternatives before you allow yourself to suffer through a foreclosure.

Best Regards
Brian L. A. Wess
Realtor®, Broker Owner
Military Relocation, Residential & Investment Specialist
Infinite Horizons Realty - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672
1 vote
Chuck Wartman, Agent, Colorado Springs, CO
Fri Sep 14, 2012
If you were doing a Short Sale I would say yes. They can be one of the biggest hurdles to completing a short sale successfully. I know you asked about foreclosure, HOA's are like any other bill you may be having trouble paying. You might want to talk to a BK attorney.
0 votes
Tracey Martin, , Salinas, CA
Tue Apr 24, 2012
Yes!! It is very important to continue to pay your HOA fees. They will send you to collections, even before the foreclosure has occurred, if you have missed enough payments. HOA companies tend to be very tenacious when it comes to collecting their money.
0 votes
Suz A, Agent, Longmont, CO
Mon Apr 23, 2012
Hello Hardman,
Very sorry you are experiencing difficulties.

Call the HOA management company and make an arrangement to pay something. It is far better to communicate and work out a payment plan.

Best of luck to you.

PML property movers of Longmont
0 votes
Luther Benson…, Agent, Colorado Springs, CO
Mon Apr 23, 2012
Hardman. As you may have noticed realtors can't give legal advice, thereby can't tell you not to pay your HOA dues. As a distressed property expert I would love to talk to you at greater length about your situation. Maybe I can help.
Luther Benson-Broker/Owner
Access Real Estate Professionals Inc.
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Sun Apr 22, 2012

We've done short sales where the HOA fee(s) was taken care of at closing by the bank, but the choice is yours. We can't tell you to not pay it or that you have to pay it, but ask yourself what the consequences are if you don't? Contact us directly if you want to discuss your situation, in which case we can better guide you.

Kevin Olson
0 votes
Sean Dougher…, Agent, Fort Collins, CO
Sun Apr 22, 2012
You need to speak to an attorney about your question. We, as real estate professionals, should not be giving you advice on this.
0 votes
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