My property is going through a deed in lieu,and HOA is suing me for past dues, will I be still responsible for lawsuit,after the bank takes over title

Asked by Iskyan, Redmond, WA Wed Jan 19, 2011

What are the consequences?

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Dan Tabit, Agent, Issaquah, WA
Wed Jan 19, 2011
As others have said, probably yes. You made an agreement with other owners to pay your portion of the maintenance for your complex. It's a shame that you ran into difficulties and can't keep your place, but the other owners shouldn't have to pay more due to your difficulties.
It may be possible to settle for less than the full amount, talk to the board and consult with an attorney. If you need a referral to a local lawyer, let me know.
2 votes
Iskyan, Home Owner, Redmond, WA
Thu Jan 20, 2011
Thank you everyone for helpful advices, the only reason why I wasn't paying the dues, is that I wasn't living there anymore and I have another house, and was trying to sell the condo, and after I couldn't sell it for some time, I had to do a short sale, which didn't happen as well, and after losing any hope, I decided to go with deed-in-lieu, but then I received a paperwork from HOA that they are suing me, in theory I understand that dues must be paid, but in reality, why would I way for something that I don't use anymore (water, sewage and garbage, that's included in the dues). Another reason why I could not make payments, is that I already had another mortgage to take care of. I just hope that there is something can be done, even with lawyers help, in order not to destroy my damaged credit history, which I nurtured for so long.
1 vote
The Cascade…, Agent, Issaquah, WA
Thu Jan 20, 2011
You will most likely be held liable for these fees either directly or as part of a judgement. Like said below, talk with a lawyer.
1 vote
Joanna Morris, Agent, Floral City, FL
Thu Jan 20, 2011
I would say discuss this with your mortgage holder and ask them to clear this up along with the deed in lieu. They are saving money by not having to foreclose and they do not want cloud on the title. It does not hurt to ask. This of course will depend on your circumstances for hardship. Good luck.
1 vote
Tonya Brobeck, , Everett, WA
Thu Jan 20, 2011
I agree, I would contact the HOA and see if you can work something out
1 vote
Bob Movin-On, , Hartford, CT
Thu Jan 20, 2011
The bank is going to want the past due HOA fees settled as part of their taking title to the property so you should be including those past due payments in you deed-in-lieu-of settlement negotiations with the bank.

Good Luck
Bob Patrick
Buy a home after foreclosure, short sale or deed-in-lieu-of expert
Movin-On LLC
Helping families/people that have lost their homes get back into another in as little as 6 months
1 vote
Jirius Isaac, Agent, Kenmore, WA
Wed Jan 19, 2011
I pretty much agree with everyone already. You really should try & work something out with them if you can. I assume since you have not been paying the mortgage you may even have some money to do that with.
If you want to learn more about stuff like this go to my blog:
1 vote
Michael Emery, , Minneapolis, MN
Wed Jan 19, 2011
Usually with overdue HOA fees, the association attaches a lien to the property which is paid off with the foreclosure/sale of the property. If you no longer own the property -hence there is nothing to attach to- you may be personally liable for that debt.

As always, contact an attorney. They may be able to negotiate a lesser settlement with the association.
1 vote
Joli Martin, Agent, Merritt Island, FL
Wed Jan 19, 2011
Your best bet is consult your attorney because with a deed in lieu of, you are probably still responsible for any liens placed on the property including the HOA. Like I said, you should definitely check with your attorney and if you don't have one, please find one so you can be properly represented.
1 vote
Ryan Smith, Agent, Murrieta, CA
Wed Jan 19, 2011
Most definitely. Like Michelle said contact the HOA and try to work something out. They may have some great payment options or may settle for less but don't ignore them because they won't go away.

Good Luck!
Chris Blasic
1 vote
Michelle Gon…, Agent, Los Alamitos, CA
Wed Jan 19, 2011
Yes. If the association is suing you then you may end up having a judgement showing on your credit report when this is all over and done with. HOA's want their money. Some money is better than no money, so try and negotiate the past due balance with them.
1 vote
Patrick Beri…, Agent, Seattle, WA
Sun Feb 27, 2011
This may be slightly off topic, but can I ask why you didn't consider a short sale? A short sale may be better for your credit than deed in lieu and of the last 3 short sales I listed, the seller was behind in dues on all 3. I got the buyers to pay off the past dues, as well as HOA attorney fees, in all 3 cases.
0 votes
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