HOA Dues and Liens (Madison: sale, foreclosure, mortgage)

[Dextorfeelsgood]

i am a member of an HOA. we have an owner that hasn't paid montly dues in years. about 3 years ago we got a lien for around 4k on his property in the event he sold. Since then his balance has risen to 9k and he just claimed bankruptcy last month. Can we file another lien for the other 5k he owes to make sure we get paid from the sale of his house? and will we get priority since his house is in our HOA?

[Dirt Grinder]

...and then the buzzards show-up.

[RocketDawg]

Originally Posted by Dextorfeelsgood

i am a member of an HOA. we have an owner that hasn't paid montly dues in years. about 3 years ago we got a lien for around 4k on his property in the event he sold. Since then his balance has risen to 9k and he just claimed bankruptcy last month. Can we file another lien for the other 5k he owes to make sure we get paid from the sale of his house? and will we get priority since his house is in our HOA?

You probably should get the HOA's lawyer involved. In fact, he should have been involved long ago.

[LCTMadison]

Yes, you can. If your HOA has an attorney, you might get him involved. If not, its fairly simple to file the additional lien, I believe it is $20 in Madison County to file it and a fairly simple document.

When he closed and signed his closing docs, his mortgage included a PUD rider and the deed for his house is subject to HOA restrictions so that lien will stay until something happens (probably foreclosure) and the bank will have to pay those liens off to the HOA to convey clear title. A bankruptcy nor a foreclosure will clear those liens.

Legally, a bankruptcy is a completely different legal process than a foreclosure, so just because he has filed bankruptcy does not mean his home will foreclose. Those liens could stay on the property for a long time unpaid, they only become an issue when the owner decides to sell the property.