subject: Foreclosure Will Not Save You from Your HOA Dues [print this page] The recession deflated the values of real estate that caused more difficulties for many homeowners. This is the reason why more homeowners can not keep up with their monthly mortgage payments. As a result, banks are forced to foreclosure many properties so they can recover their investments.
During a foreclosure, you must not forget that you still have to face several financial obligations. One of the biggest issues that can cause some problems for you is the homeowner's association dues. In many cases, homeowners are not aware of their HOA responsibilities. They tend to forget this issue once they file for bankruptcy and whenever a foreclosure proceeding is under way.
Most homeowners who stopped making payments for their mortgage believe that paying the homeowner's association dues is not required anymore. This is not true and you will get into trouble if you do this. You have to remember that until the bank formally forecloses the property, you are still personally liable for all HOA dues and other assessments.
Not paying the homeowners dues can become very problematic even if you have filed for bankruptcy. You can still face the consequences of your non-payment after the discharge of the bankruptcy.
The best that you can do is to use legal means to stop the accumulation of HOA dues. You may surrender the property legally. To help you on these matters, it would be best if you can hire a bankruptcy attorney. It is possible to include all HOA dues and assessments in the bankruptcy as long as all legal processes have been followed.
You are responsible for all homeowner's association dues, back accounts, and assessments until the bank or lender forecloses the property. Your responsibility to the property holds true until the foreclosing lender formally assumes the title of your home.
Because of increasing delinquencies, homeowners associations have become more aggressive in pursuing non-paying homeowners. They normally place a lien on the property for all the assessments levied against it. In most cases, this action alone could trigger foreclosure proceedings by the homeowners associations.
Because of the increasing numbers of foreclosures, more and more homes have become properties of the banks. This is forcing many homeowners associations to seek judgment on the individual homeowners. The late fees that you have to pay depend on the type of community where you reside. In some states, there is no limit on late charges. Other planned communities however have limits.
A judgment is very costly for you. It will include past dues, late fees, violation of contract, and all legal fees. The attorney's fee alone is very costly because the monthly charges can accumulate until your account has been settled or paid in full. A judgment therefore can become another financial burden for you.
For some homeowners, the prospect of foreclosure is unavoidable. If you have problems with your HOA, you should take legal action to avoid or minimize the costs of paying late dues and assessments. That is why you should get the services of a competent bankruptcy lawyer who can help you in these kinds of cases.
