Technically, HOAs can pursue the previous owner for money owed to them after foreclosure. Although, if you short sale the property before it forecloses, you would have settled with the HOA & sold the unit so that possibility would be avoided. Sometimes, the banks will pay the HOA for part of the past due amount after they foreclose (but this is not necessarily always true). Feel free to contact me any time.
Sara Mehrpouyan CDPE
Specializing in Foreclosure & Short Sale in Los Angeles & Ventura County
Dre License #01712757
Direct Phone: 818-903-2040
The individual owes monies to the HOA. Not the property. The fact that they can put a lien on the property has nothing to do with the fact that they can come after an owner personally for monies owed to them. Yes they put a lien, but they can also send the owner to a collection agency and sue them for the moneys (deficiency) even after the foreclosure took place.
So yes.. they can and will likely collect, if there are any unpaid fees, even after the foreclosure. This is one of the reasons why you are better off with a short sale. We often negotiate a settlement and pay HOA fees through a short sale.. so the previous owner walks away not owing anything and having no deficiency claims pending against them.
Feel free to email me if you have any further questions firstname.lastname@example.org
HOA Managements Companies have gotten very tough due to the foreclosures aftermath. I've heard that they will aggressively go after the former owner to collect the unpaid dues. Please consult with an attorney to review your paper work. Hope this helps.
Hi Terrolk, the best thing for you to do is speak to a real estate attorney. You need to explain the time line of when and how the HOA notified you about the past due fees. This is the best way for you to protect you and your family. Good luck!
if a condo owner short sells / forcloses on their property eventually it will be sold and during that process everyone is aware of all expenses and unpaid debt including any outstanding HOA fees. a title company reviews everything to ensure "clear" title is transferred to the new buyer. the unpaid debt will either be paid by the bank or the new buyer during the escrow process so that title is clear.
i would suggest seeking legal council if you are questioning a situation you may be involved in.
If you own a property with an HOA and you don't pay them they have every right to go after you for the amount you owe them for the time you owned it even if you were foreclosed on.
The back HOA is not automatically wiped out or transferred to the new owner.
I would seek legal council, good luck.
Lol...small world. A client is in escrow on a foreclosed condo, and we had this conversation with the HOA yesterday. The HOA would have put a lien on the unit for past due fees and settled any due expenses prior to the new owner taking title.
The SoCal Investment Real Estate Group
Sothebyâ€™s International Realty
License # - 01343854
The purpose of life is to discover your gift. The meaning of life is to give your gift away.
Most HOAs collect unpaid monthly fees and assessments from the people that were on title when the fees were or assessments were due. You should consult a California Attorney to make sure what the law and case law dictates.
Prudential California Realty
3103 Wilshire Blvd