i owe 4,000 in property tax and 11,000 in HOA who should I pay first, the HOA has lein on one condo and property tax is behind two years. any help?

Asked by Searchforchin, Lake Oswego, OR Wed Dec 8, 2010

So I own two condos, the first i owe 3,280 in property tax because I haven't paid for two years, I also own 8,500 in HOA to a lawyer which has a lein on my first condo. On my second condo I havent paid my HOA at all and just recieved a letter from a lawyer about putting a lein on that condo as well, the property taxes for the first year haven't been paid yet either. I get about 10,000 in quarterly checks and wondering who should I pay first the lawyer or the property tax?

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Patrick Smith, Agent, Portland, OR
Wed Jan 5, 2011
Who you pay first is up to you. Both entities, the county tax assessor and the HOA, have the legal right to record a lien against the affected properties. What this means is they can file a lien in the amount owing at the time of recording and the lien will appear as a judgement against your property on the title report at the time you sell your property.

You may want to see which entity is charging the greatest penalties and interest and take care of them first. It sounds as though this economy may have had a major impact on your ability to meet your financial obligations. You may want to explore selling at least one of your properties if you have any equity in any of your properties.

Patrick Smith, MBA, EcoCertified Broker
Oregon Realty Company
0 votes
D, , Oregon
Mon Dec 20, 2010

If your plan is to catch up both and keep them current then start with the HOA. Both are important as they take precedence over any mortgage however Paul is correct. An HOA can foreclose much quicker than property tax. Property tax starts foreclosure proceedings after 3 years of non-payment which means it's actually the 4th year the foreclosure process begins. I posted the State of Oregon's link below http://www.oregon.gov/DOR/PTD/IC_310_671.shtml
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Dallas Texas, Agent, Dallas, TN
Mon Dec 20, 2010
Virtual answer here would not assist you best confer with real estate attorney determine what would benefit you.

HOA - do they have right to foreclose?

Tax has your mortgage company NOT paid that rolled into your monthly payment.? Many times they do that force an escrow account.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
Joan Bowyer, Agent, Gresham,, OR
Mon Dec 20, 2010
I would contact a good real estate lawyer on this one before I do anything. I can recommend Darryl Pulley in N. E. Portland. I have used him for my own personal business as well as for my clients. You will need to figure out why you are in the pickle that you are in and resolve that issue as well. A good real estate attorney will help you with this major dilemma. Joan Bowyer-John L. Scott-Principal Broker-serving buyers and sellers since 1982.
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The Stephen…, Agent, Portland, OR
Sat Dec 11, 2010
You have a lot of obligations here and a lot of different parties who could make your life difficult. I would talk with a lawyer - a real estate lawyer in particular.
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Paul Johnston, Agent, Lake Oswego, OR
Thu Dec 9, 2010
The short term answer is to deal with the HOA liens first, as they can be foreclosed in a matter of months. A property tax foreclosure takes much longer, something like four years. But you need to look at the long term situation: Do you have equity in the condos? Is one of them your principal residence? Are they worth saving? And if you don't fix whatever got you behind on these payments in the first place, you'll have the same problem again. The answers to these questions will help determine what you should do.
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Lana Lavenba…, Agent, Grants Pass, OR
Thu Dec 9, 2010
Thats a hard one to answer but I would personally start paying some on both. Maybe you can take $1000 one month and pay on the HOA and then the next month pay $500 on the taxes and another $1000 toward the HOA. I am not an attorney or CPA to give you legal advice - but I would just start making some kind of payment on both.
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David Axness, , Lake Oswego, OR
Wed Dec 8, 2010
You absolutely need to contact an attorney asap. If you cannot afford one, you can go to a housing counseling agency for low or no cost. This is a very serious question and you should seek a professionals answer. Real estate brokers really should not be providing answers to these types of questions with legal ramifications. Best of luck and I'm very sorry for your difficult situation.
Web Reference:  http://fearlesshomebuyer.com
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Donn Rasch, Agent, Clackamas, OR
Wed Dec 8, 2010
Not enough info here to make a sound financial decision. Why are you behind on these payments? Are you behind on your mortgage? Is one of the condos a rental? Are you in forclosure on either one? Do you have any savings? Do you have any retirement accounts you can raid? Do you have any other assetts you can sell? Are the condos on the market for sale?
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