When a home reverts to Beneficiary when can you stop paying HOA Fees and insurance if you are not leaving at the property?

Asked by jfjbm5, Torrance, CA Tue Mar 5, 2013

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Cory La Scala, Agent, San Diego, CA
Wed Mar 6, 2013
When you own the home, you pay the HOA fees. If the home has been foreclosed upon and you received a Notice of Sale, and the home went to auction and no one bought it, it goes back to the beneficiary, meaning the bank owns it now. If you don't own the home anymore, you wouldn't be on the hook anymore, the new owner would be. It's refreshing to hear from a distressed owner that wants to be responsible!
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Sara Mehrpou…, Agent, Los Angeles, CA
Wed Mar 6, 2013
This would be a question for an attorney. If the property had not been foreclosed on yet, I would suggest a Short Sale so that would settle the money owed with the HOA as well.

Sara Mehrpouyan CDPE
Specializing in Foreclosure & Short Sale
Rodeo Realty
Direct 818-903-2040
dre license #01712757

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Michael Magaw, Agent, Torrance, CA
Wed Mar 6, 2013
You are responsible for the HOA dues when you own the home. If the bank took the home back, then they assume the HOA dues from that date forward.
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jfjbm5, Renter, Torrance, CA
Tue Mar 5, 2013
sorry we were the owner and it reverted back to bank but we are not living on the property so do still have to pay hoa and insurance. How long after it reverts back are we responsible for hoa and insurance.
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As the other comments have indicated, it appears you may not be responsible for these fees any longer, but you really should call and speak with an Attorney to make absolutely sure this is correct. Most likely it is, but we, as Real Estate Agents, are not allowed to provide Legal advise. You should speak with an Attorney.
Flag Wed Mar 6, 2013
Emily Knell, Agent, Huntington Beach, CA
Tue Mar 5, 2013
The way you ask your question makes it sound like you are the previous owner still occupying the property & not a renter, so this is what is in my mind as I answer your question.

When a property reverts to the beneficiary, the title to the house is recorded to a new entity & the home is no longer owned by the now previous owner (you?) You shouldn't be on the hook for any payments other than whatever is outlined in your rental agreement should you be now leasing back the property from the bank / beneficiary.

You should only be concerned with paying whatever is outlined in your lease agreement. If you no longer own the property, the homeowner insurance & HOA bills are no longer in your name. The beneficiary should have paid current or paid for a new policy of homeowner insurance & should have also paid current any back HOA dues.

You should call your HOA president or property manager just to make sure that your previous account is showing a $0 balance to you personal or that they have no intention of pursuing you for any deficiency owed now or in the future. You should also contact your homeowner ins co, just to make sure you don't owe them anything either. It's possible the beneficiary has gotten a new policy with a different carrier.

I am not an attorney, these are my opinions based on my own experiences in working with many underwater short sellers. You should consult an attorney.

I don't look back on this same Trulia posting for answers after mine. I would be curious to know why you didn't do a short sale, were you holding out hope of a getting a Loan Modification, feel free to email me & tell me about it.

Emily S. Knell
562-430-3053 c
Realtor Since 1996
Realty ONE Group
Short Sale Listing Agent w/ 99% success rate
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C. Lee Miller, Agent, Rancho Palos Verdes, CA
Tue Mar 5, 2013

This is a question an Attorney should answer for you and not an agent. You should consult with a legal expert.

C. Lee Miller
Web Reference:  http://www.cleehomes.com
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