m.burtshaw, Home Buyer in Asheville, NC

what is the procedure for a homeowners association to collect back hoa dues if the owner has a reverse mortgage. Is a lein put on the bank?

Asked by m.burtshaw, Asheville, NC Sun Oct 28, 2012

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Hamidtrulia, Renter, United Neighborhood of Springdale, Tulsa, OK
Tue Jun 11, 2013
Hello m.burtshaw

Reverse Mortgages are designed to enable senior homeowners 62 years and older to convert part of their home equity into cash. They can do this without having to sell their home or give up the title. Seniors do not have to take on any new monthly mortgage payments either (although they are required to continue paying their property taxes and homeowners insurance). Instead of making monthly payments to a lender, the reverse mortgage lender makes payments to the senior homeowner.

1 vote
Debbie Franc…, Agent, Asheville, NC
Sun Oct 28, 2012
Great point Bob. I am not sure at what point the deed is transferred to the bank in a reverse mortgage. A search for the deed will tell you who currently owns the home. If the homeowner is responsible and they are not making payments, then it is also possible they are not paying the mortgage. If this is the situation then the home may be going into foreclosure.

As Bob mentioned, you best recourse may be to talk to the attorney the HOA uses. This is not a unique situation.

0 votes
Bob Gardner, Agent, Asheville, NC
Sun Oct 28, 2012
Hi Burt,
I'm thinking this is more of a legal question that might best be answered by the attorney that
your HOA uses to enforce it's C&Rs. If a lien is needing to be put in place, it will need to be placed
against who ever is the current owner on the deed though. I think your attorney would agree that
until that person actually transfers the deed to the bank, that is creating a lien of it's own through
the reverse mortgage, the bank is not a party that has any responsibility to the HOA.
I hope this helps a little.
Bob Gardner
0 votes
Debbie Franc…, Agent, Asheville, NC
Sun Oct 28, 2012
The lien is put on the property. Whoever owns the property is responsible for all liens. The homeowner has essentially sold their home to the bank and is renting it back. In most rental situations of condos, etc, the HOA dues are built into the rental payment. Mortgages are recorded. You can find more information in the registrar of deeds online data bank.

Hope this helps.



Deborah H. Francis, GRI, ABR, ePRO, SFR, GREEN, Fine Homes Specialist, CRS Candidate
Prudential Lifestyle Realty
Associate Broker/Realtor®
7 Orchard St., Suite 101
Asheville, NC 28801
cell: 828-553-9019 email: deborah@dhfrancis.com
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