Can my HOA charge me for foreclosed homes or residents just unwilling to pay their dues?

Asked by Toby, 33076 Sun Dec 26, 2010

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Alma Kee, Agent, Tampa, FL
Sun Dec 26, 2010
Hi Toby,

Here's a very good site about living in an HOA community:

What some HOAs are doing is going ahead and foreclosing on properties (even if there is not equity because the first mortgage stays and is higher than the market value) and then immediately renting them out. You may want to attend your board meetings and suggest they do this--otherwise the owners who are paying will get stuck with paying their neighbor's fair share! Also a recent change allows an HOA to collect the back due assessments from a tenant. Your board of directors is probably taking the advice of a hired property management firm and unfortunately some of these companies do what is in their best interest and not the association they manage. Take an active role and start attending your board meetings to find out what your volunteer directors are doing to tackle the delinquent homeowner issue.

Hope this helps.

Happy New Year!
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Dallas Texas, Agent, Dallas, TN
Sun Dec 26, 2010
Best confer with your HOA regulations what can or can't take place. That is the most difficult issue(s) with HOA when comes down to foreclosures OR not paying for HOA. However most will lien the property for dues

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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Mott Marvin…, Agent, Sunny Isles Beach, FL
Sun Dec 26, 2010

In most cases- the answer is yes. Condominium Associations can implement many remedies in order to bring the budget and operating capital current.

Many people- especially investors do indeed walk away from investments that have gone sour. This is the primary reason that lenders will avoid writing mortgages when there are too many rentals within the association. The association does recover past due maintenance once the bank sells the foreclosed unit.

My understanding is that the bank is obligated to pay a maximum of 1 years past due association fees - even if the fees have been unpaid for several years.

The link below will take you to the official site of Florida Condominium Law...

Welcome to the Division of Florida Condominiums, Timeshares, and Mobile Homes. The Division has the power and duty to enforce and ensure compliance with the provisions of the following statutes and administrative rules:

The Condominium Act, Chapter 718, F.S.
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Tom Fonseca, Agent, Plantation, FL
Sun Dec 26, 2010
Yes. There exists the risk of constantly escalating HOA fees. HOA's can foreclose on a homeowner (is in the docs, and it is in most docs) for non-payment of HOA dues and fees. Many homeowners on fixed incomes are in fact in foreclosure because their fees doubled or tripled. This risk is why HUD via the FHA loan won't guarantee the loans in most HOA's too many foreclosures, too many rentals. (investors walk away quicker from upside down deals). There is however legislation being talked about to require banks to pay the dues on foreclosed properties, and/or larger portions of the back dues. Meanwhile boards of directors of HOA's are forced into voting in assesments (big chucks of money due at once or over time) or to vote for higher dues
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Don Tepper, Agent, Burke, VA
Sun Dec 26, 2010
Probably yes.

It depends on the HOA documents. But the two most likely ways are through a special assessment or through an increase in the regular assessment.

As the other answers note, the HOA has a responsibility to have a balanced budget. Most of the money likely comes in through HOA dues. If those revenues drop, the HOA can raise the dues on the other members, cut services to reflect reduced income, or both.

HOAs typically can raise dues either through the regular (whether it's annual or monthly or whatever) fee or through special assessments. There are procedures they have to follow. That'll depend on the HOA documents. But usually there's a Finance Committee that will propose an HOA fee adjustment. The Board votes on that. Usually, there's some opportunity for the HOA members (such as you) to provide input--a public meeting, for instance.

So while the answer to your specific question is contained in your HOA documents, the general answer is: Yes, they can.

Hope that helps.
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Amy Givoni, Agent, Boca Raton, FL
Sun Dec 26, 2010
If the budget is low due to homeowners that are not paying, the association can adjust the budget to meet the financial needs of the community. Please call or email with any further questions.

Thank you,

Amy Givoni
Givoni Realty Corp.
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Nicole Marks…, Agent, Boca Raton, FL
Sun Dec 26, 2010
Hi, Toby. Each HOA has its own Rules and Regulations. Call your management company and ask them. In my community we have residents who aren't paying their HOA, but I don't make up the cost. However, the HOA has taken away some of their privileges that are covered by their dues, such as, easy entrance to the community (we are guard gated), mowing their back yard, etc..

Unfortunately, times are tough for a lot of people and they are struggling to make ends meet. However, that being said, it's not uncommon for me to know people who aren't paying their mortgages or HOA dues, but are buying big screen t.v.s or driving very expensive cars. This is a tough situation for everyone.

Nicole Marks Mason, Realtor
Web Reference:
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Tim Moore, Agent, Kitty Hawk, NC
Sun Dec 26, 2010
The HOA can't charge just you but they can vote to raise the HOA fees to cover their costs and pass the increase along to all members. It is always a fact that HOA's can change their fees as they add new services or as the common insurance or taxes increase. Some HOA's have written rules and caps but most don't have a cap on the fees. Hopefully the HOA is filing liens on the properties not paying so that when they do sell the bank will have to pay off these liens.
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Scott Godzyk, Agent, Manchester, NH
Sun Dec 26, 2010
If you are a home owner in a HOA and there are other units that are not paying, then the costs can be passed onto the other owners. Hopfully the condo association , their management or attorney has attached teh unit correctly so that even through foreclosure, they can recoup the unpaid condo fees whoch will then act as relief for those who have had to pay more to make up for the loss.

You will need to check your condo docs on what they can or can do
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