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It is my understanding that even if the home is foreclosed for HOA dues the former homeowner is still responsible for the mortgage.
It is not ethical for the HOA in NC to rent it out (unrelated business income for non-profit).
Yes, you are correct, the homeowner is still on the hook for the mortgage. It usually doesn't get paid and then the 1st mortgage forecloses anyway.
I agree with your opinion about it being unethical for the HOA to rent out the unit, even if they disclose the issue and do a month to month lease they are collecting the income and mortgagee is taking a loss. It's legal rent skimming...
WAIT. Slam on the breaks. OP stated this was for CA. I missed that. The need to post a fresh thread in a CA forum.
Yes, CA has a lot of interesting things going on with regards to this. I just came back from a meeting out there. HOAs are indeed now actively taking properties back and renting them out. However, it was my understanding that they were doing this with the cooperation of the senior lien holders and actually even making mortgage payments on the debt to keep it current.
Could this be coming to a theater near us sometime soon??? I would say most certainly.
Also, as fyg it considered fraud now to sign a lease on a property that is knowingly facing foreclosure.
Last edited by palmetto75; 03-05-2012 at 11:11 AM..
Reason: typo
Yes, CA has a lot of interesting things going on with regards to this. I just came back from a meeting out there. HOAs are indeed now actively taking properties back and renting them out. However, it was my understanding that they were doing this with the cooperation of the senior lien holders and actually even making mortgage payments on the debt to keep it current.
Could this be coming to a theater near us sometime soon??? I would say most certainly.
Also, as fyg it considered fraud now to sign a lease on a property that is knowing facing foreclosure.
This would prevent the senior lien holders aka banks from writing down these properties to their true market value, so I can see why the banks are allowing this.
I really appreciate your post. I didn't know the HOA could foreclose on me and force me out. I owe them a small amount of money in comparison to what I owe my mortgage company. My question is whether ADL Holdings will still come after me for the HOA debt regardless of whether they sell the property? Also is there anything I can do to get the property back. You are right about the law firm being in cahoots with purchaser. For the record, my HOA fees went from $85.00 monthly to $178.00 and will probably continue to rise. They may have done me a favor.
I really appreciate your post. I didn't know the HOA could foreclose on me and force me out. I owe them a small amount of money in comparison to what I owe my mortgage company. My question is whether ADL Holdings will still come after me for the HOA debt regardless of whether they sell the property? Also is there anything I can do to get the property back. You are right about the law firm being in cahoots with purchaser. For the record, my HOA fees went from $85.00 monthly to $178.00 and will probably continue to rise. They may have done me a favor.
Are you in a condo or HOA? That's a lot for an HOA. ADL Holdings won't come after you. The lawfirm for the HOA will.
If you don't fight them taking your home they will charge you $1200 in attorney fees. If you fight them then the sky is the limit. If you want to keep your home I suggest you pay the HOA since they can foreclose on you faster than the mortgage company.
I really appreciate your post. I didn't know the HOA could foreclose on me and force me out. I owe them a small amount of money in comparison to what I owe my mortgage company. My question is whether ADL Holdings will still come after me for the HOA debt regardless of whether they sell the property? Also is there anything I can do to get the property back. You are right about the law firm being in cahoots with purchaser. For the record, my HOA fees went from $85.00 monthly to $178.00 and will probably continue to rise. They may have done me a favor.
The HOA can absolutely forclose on property . Also, they can put liens on your property if you are not paying your assessmemts.
If the HOA's management company has a collection agency, the homeowner can be turned over to the collection agency and his/her credit record tarnished. If the mortgage company forecloses and you lose the property, the delinquent assessments do not go away. The collection agency can still go after the former homeowner for those debts still owed to the HOA.
When you purchased the house, you "signed" a contract with the HOA to abide by the CCRs. In those CCRs is a clause stating what percentage increase annually the HOA is allowed to raise the fees.
In regards to the increase in your HOA fee increase, was there a special assessment included? It seems highly unlikely that a 100% increase would be enacted.
Please look at: North Carolina Planned Community Act, chapter 47F (as previously mentioned) which regulates HOAs in N.C. and North Carolina Non-profit Corporation Act, chapter 55A as all HOAs are non-profits.
It makes sense for homeowners to read the CCRs before buying a house. The aim of the HOA is to protect every homeowner's home values in the subdivision and ensure the upkeep of the common areas.
Furthermore, if the HOA fees were raised by the amount mentioned, it would have been approved at the annual meeting by a vote. You could have voted against it. Were you there?
The HOA can absolutely forclose on property . Also, they can put liens on your property if you are not paying your assessmemts.
If the HOA's management company has a collection agency, the homeowner can be turned over to the collection agency and his/her credit record tarnished. If the mortgage company forecloses and you lose the property, the delinquent assessments do not go away. The collection agency can still go after the former homeowner for those debts still owed to the HOA.
When you purchased the house, you "signed" a contract with the HOA to abide by the CCRs. In those CCRs is a clause stating what percentage increase annually the HOA is allowed to raise the fees.
In regards to the increase in your HOA fee increase, was there a special assessment included? It seems highly unlikely that a 100% increase would be enacted.
Please look at: North Carolina Planned Community Act, chapter 47F (as previously mentioned) which regulates HOAs in N.C. and North Carolina Non-profit Corporation Act, chapter 55A as all HOAs are non-profits.
It makes sense for homeowners to read the CCRs before buying a house. The aim of the HOA is to protect every homeowner's home values in the subdivision and ensure the upkeep of the common areas.
In general the price paid at foreclosure auction is the amount due to the HOA. Therefore there would be no debt to the HOA after the auction.
In general the price paid at foreclosure auction is the amount due to the HOA. Therefore there would be no debt to the HOA after the auction.
The problem is that they dont sell at auction, they just go back to the hoa or holding company. Very rarely does an hoa foreclosure with equity come through, and when it does all the vultures jump on it.
I really appreciate your post. I didn't know the HOA could foreclose on me and force me out. I owe them a small amount of money in comparison to what I owe my mortgage company. My question is whether ADL Holdings will still come after me for the HOA debt regardless of whether they sell the property? Also is there anything I can do to get the property back. You are right about the law firm being in cahoots with purchaser. For the record, my HOA fees went from $85.00 monthly to $178.00 and will probably continue to rise. They may have done me a favor.
What are you getting for that $178 a month?
Landscaping? Water? Trash? Sewer? Exterior Insurance? Pool use? etc?
If all of the above, not a bad price.
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