The bank owns my house that went into foreclosure/auction in July. Do I owe the HOA the balance?

Asked by Mysteryvxn, Orange County, CA Tue Sep 30, 2008

The bank owns my house that went into foreclosure/auction in July 08. HOA just sent me a bill for a balance that quit paying for almost a year ago. I haven't even seen a statement from them in almost a year. I noticed, it is also a new management company running my old property. Am I responsible for the balance? I was told the banks will pay for it or HOA may not get paid at all. I live in Southern California. I'm afraid to call to tell them the situation and get duped into paying something I don't have to pay for. I have emailed them and told them I no longer own the property. But they told me I need to speak with the accountant to stop getting a bill. HELP!!

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Daniel Klein, Agent, Beverly Hills, CA
Sat Jan 7, 2012
You are not responsible for HOA fees after title transfers (your foreclosure. But you are still responsible for the HOA fees while you were still living in the property.
Most likely a collection company is coming after the HOA fees. There are ways to settle fo 10-20 cents on the dollar.
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Tom Zoch, , Rancho Cucamonga, CA
Fri Oct 1, 2010
This is a collection issue. As a result, the HOA will most likely try to collect from both you and the bank. They can do so on the bank by placing a lien on the title. They can also go after you in small claims (depending on the amount) since you owned the home for a large portion of the bill they are trying to get you to pay. I would suggest a consultation with a Real Estate Attorney as they can give you some guidance and send a letter on your behalf to the management company which may get them off your back. It may be worth the $300 for an hour.
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Greg Semos, , Mission Viejo, CA
Fri Oct 1, 2010
First, the answer is a legal issue, and a fairly complex one at that. As a property owner in an HOA you were responsible for payments. Foreclosure may have wiped out the debt, but many HOA's in Orange County will try to collect and will hire a collection agent to do it. Many use an attorney. The lien may have been wiped out, the debt may be another issue.

Greg Semos
949 632-4883
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Sean Heideman, Agent, Phoenix, AZ
Wed Dec 23, 2009
I'm not an attorney but you could consult with an attorney regarding this question. My experience would say you do not owe these liens since the your bank foreclosed on the property. They are currently the owners of your home and they do not want this home on their books (for lending purposes). Therefore, they are going to put your home on the market to try to resell it to another buyer but the new buyer will not agree to assume your prior HOA liens. Therefore, your lender has more than likely already paid your HOA liens just so they can resell the property. Please do consult with your attorney regarding this matter. I hope this helps!
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Mysteryvxn, , Orange County, CA
Wed Dec 23, 2009
You can find the answer to this question and more through my other thread:…
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Jeremy Lehman, Agent, Garden Grove, CA
Wed Dec 23, 2009
Can you let us know how this turned out?
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Harrison K.…, Agent, Irvine, CA
Fri Oct 30, 2009
Be careful with amounts you owe to homeowner association for dues that are in arrears and whether those were or were not wiped away by the property foreclosure.

With friends and associates who are highly qualified real estate lawyers here in Orange County, I will provide you with information about them if you let me know by contact or telephone call.

I am a Realtor and real estate broker ... and also a lawyer for many years here in Orange County. My business is real estate and no longer do lawyering for individual clients.

Harrison K. Long, Coldwell Banker Previews, Irvine, CA. DRE 01410855.
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James Patton, , Tustin, CA
Fri Mar 27, 2009
Officially you should speak with an Accountant. In my experience however, you have nothing to worry about in CA. The HOA can file a lien on the property - not on you. This means that, if they file a lien, they can hold up the sale of the property by the bank. However, that is no longer your problem. The HOA's debt is with the property which is now owned by the bank. As far as the comany who is contacting you, maybe someone else can shed some light on how to get them to stop? I'd imagine they'll stop once the bank pays them - which they'll have to do to re-sell the property.
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Curtis Darra…, Agent, Poughkeepsie, NY
Tue Sep 30, 2008
Mystery, I'm not an attorney and that's who you should speak with. But my opinion is no. Sounds like a collection agency if you ask me. I'm not familiar with how the foreclosure process works in CA but in NY once the bank gets the deed, they are responsible for the HOA fees from that point forward. Anything before that is typically a loss. That's not to say they won't still come after you for it. Speak to a good Real Estate Attorney familiar with the foreclosure laws in your state. Good luck.
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