Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just like taxes, the HOA can and will foreclose on your home if you don't pay. Legally, they can do this. Doesn't matter how much you owe on your mortgage.
Most states allow an HOA to pursue foreclosure. The process and time varies state to state and depends on if the state is a judicial or non-judicial foreclosure state.
Regardless, if and when an HOA forecloses on a unit/lot, it then becomes responsible for the first mortgage, property taxes and insurance. Unless the property had a significant amount of equity in it, it would make no sense for an HOA to foreclose, no matter how delinquent the owner was.
They most certainly do bill the HOA at the point of service in most cases.
Some HOA collection law firms will consider a contingency arrangement to attempt to collect on a court-ordered judgment when they determine there is a high probability of recovery via attaching bank accounts or wage garnishment.
HOAs don't want to fine or lien, they want performing properties.[/quote]
The HOA's declaration often times requires the HOA to take all action necessary to make paying the assessment a priority for each owner. Failure to do so means the other owners are subsidizing the owner who fails to pay.
A lot of people on these forums are harsh and don't look at the entirety of the situation before passing judgement.
The HOA waived all fees basically admitting they was in the wrong as the OP stated.
The Attorney has to be paid one way or the other but the HOA doesn't want to pay the fees so they are forcing her too.
There is probably a clause you signed saying that if an attorney is required for any reason by the HOA you are responsible for the fees.
Regardless, if and when an HOA forecloses on a unit/lot, it then becomes responsible for the first mortgage, property taxes and insurance. Unless the property had a significant amount of equity in it, it would make no sense for an HOA to foreclose, no matter how delinquent the owner was.
middle-aged mom I see under your name, your a Real Estate Marketing Consultant but you don't know the first thing about foreclosures and your demonstrating you don't have the knowledge to give advice on this subject.
When the HOA forecloses, the HOA does not owe the first mortgage anything, or taxes, or insurance. The HOA never signed any mortgage contracts. They simply hold the title and the original homeowner holds the mortgage and the bank still has a lien on the house. The HOA can simply choose not to pay anyone. The bank will pay the property taxes to prevent their lien from being wiped if the town took the property. HOA's are making a good amount of money renting these places out, so yes, it is beneficial for them to foreclose. Eventually the bank will foreclose on the HOA, put the house up for sale, and have a paying member once again. But this is taking years.
Basic math, it makes financial sense for the HOA to foreclose and rent out the property for years to recoup the old owner not paying and maybe even make some money vs letting the deadbeat owner stay for free. If other see he is not paying and nothing happens, they will stop paying too.
Last edited by 399083453; 07-19-2013 at 09:16 PM..
Yes, because there was no way for me to make the payment. I took a check to the management office the first month and the manager told me to hold on to it that they have not created an account for me. I kept calling for her to give me an account to make payment but she gives one excuse or the other.
You should have simply mailed it in. If they cashed it, you would have paid. If they mailed it back to you, rejected, it would have started a paper trail.
middle-aged mom I see under your name, your a Real Estate Marketing Consultant but you don't know the first thing about foreclosures and your demonstrating you don't have the knowledge to give advice on this subject.
When the HOA forecloses, the HOA does not owe the first mortgage anything, or taxes, or insurance. The HOA never signed any mortgage contracts. They simply hold the title and the original homeowner holds the mortgage and the bank still has a lien on the house. The HOA can simply choose not to pay anyone. The bank will pay the property taxes to prevent their lien from being wiped if the town took the property. HOA's are making a good amount of money renting these places out, so yes, it is beneficial for them to foreclose. Eventually the bank will foreclose on the HOA, put the house up for sale, and have a paying member once again. But this is taking years.
Basic math, it makes financial sense for the HOA to foreclose and rent out the property for years to recoup the old owner not paying and maybe even make some money vs letting the deadbeat owner stay for free. If other see he is not paying and nothing happens, they will stop paying too.
I like MAM posts but 399083453 you are 100% correct on your assessment of HOA foreclosures.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
