HOA in Sun Lakes (foreclosed, renting, mortgage)

[toddandrews65]

My Mom and Dad both passed 2 years ago. They put their house in a trust. The mortgage owed is 200,000 and house is worth about 150,000. That is the ONLY item in trust and no assets. The HOA is suing me, trustee, for back fees of $900 and they now want $3500. Can they sue me?

[Kimballette]

I don't know. What does the lawyer for the estate say? No one on this anonymous internet forum is qualified to give you a legal opinion.

[Burning Madolf]

Originally Posted by toddandrews65

My Mom and Dad both passed 2 years ago. They put their house in a trust. The mortgage owed is 200,000 and house is worth about 150,000. That is the ONLY item in trust and no assets. The HOA is suing me, trustee, for back fees of $900 and they now want $3500. Can they sue me?

Without knowing any details about what you owe, it's impossible to say. However, you can be sued for failing to pay assessments and other fees and or fines.

[thinkalot]

How much they paid for the home and what it is worth now doesn't matter.

I would think the trust would be liable since it is the owner. Why do you think you shouldn't pay? Isn't the HOA doing what was agreed to as for common areas, etc?

I doubt if the house was the only asset. Car? furniture? Bank Accounts? What was that money used for?

[wit-nit]

HOA's can put a lien on the property for past HOA assessments and monthly fees. They usually collect when the property is sold or turned over to a new owner.
We had similar situations in our development several times and the HOA got a lien against the properties and then got paid during escrow when the properties sold and closed.
Sometimes heirs will pick up where the deceased left off and continue the HOA payments until they sell the house.

[cully]

First, sorry about the passing of your parents.

I think what you're saying is the HOA is suing YOU personally, not the estate. And can they do this.

Sometimes only the trust will be the sole recourse for the HOA's unreceived dues.

Sometimes, eventually the "hidden" owner is discovered and then sued for unpaid debts.

I gather options such as renting the home would not have put a dent in the mortgage, utilities and HOA dues so this was not done and no payments were made.

At any rate, trusts can vary by state so the best thing would be to consult an attorney in the state where the property is in order to decide the best course of action on this upside down mortgage.

By the way...it was a regular mortgage? Not a reverse mortgage?

And hopefully there are no other beneficiaries worrying you about this.

[richard222]

Since your parents passed away 2 years ago, and the house is the only thing in the trust, and it has not as yet been foreclosed on, something else is going on here. Are you renting out or living in the house yourself? How are the payments being made on the mortgage? It appears that you have an interest in the property, being the trustee and maybe also the beneficiary. Suggest that you look at the law regarding liability of a fiduciary. I believe that the HOA will put a lien on the property. It sounds like the trust is still open, if so, why? They are usually settled within two years unless there are other instructions. Lot more going on here than what is stated in the original post.

[IC_deLight]

Originally Posted by toddandrews65

My Mom and Dad both passed 2 years ago. They put their house in a trust. The mortgage owed is 200,000 and house is worth about 150,000. That is the ONLY item in trust and no assets. The HOA is suing me, trustee, for back fees of $900 and they now want $3500. Can they sue me?

A trust is not a person nor even a legal entity. Accordingly a "trust" generally cannot be sued. One sues the trustee in his/her capacity as trustee for the trust.

Property conveyed into a trust during the life of the grantor(s) does not typically become part of the estate of the grantors upon death. Given that the property did not belong to your parents at the time they passed away it would not become part of their respective estates. I'm guessing your parents were the co-trustees with you or perhaps you became the successor trustee upon their passing.

To the extent the HOA corporation is suing you, it should be doing so solely in your capacity as trustee for the trust. If you are being named personally in some other capacity, your attorney can challenge the pleadings. In any event you have no personal liability to the HOA corporation. (Liability should be limited to your capacity as trustee). Due to the use of a trust form of ownership, the HOA cannot attach to any assets that belonged to your parents.