Please help - we're going through foreclosure - do we need to continue to pay HOA fees? (Chandler: short sale)

[househelp]

Long story, but basically we have done EVERYTHING in our power to keep our house and/or avoid foreclosure - loan modification, short sale, etc., but the bank has continued to be difficult and is leaving us no choice but to go into foreclosure. We moved out of state (job relo), but have been paying water, electric and HOA fees for 4 months now to maintain property in hopes of short sale.

My question - now that we KNOW we are going to end up with a foreclosure, can we stop paying our ($150+ a month) HOA fees? What are the ramifications of this? Do they report to credit agencies? Will they bring a judgement against us? (NOTE: I'd like to keep our credit up if possible - we have PERFECT credit, except when this hits.)

If it matters, we're going to see if the bank will do a deed in lieu, though that's doubtful with how difficult they have been thus far.

thanks in advance for your help and God bless.

[rjrcm]

This may answer your question:
HOA still seeking fees despite man losing Chandler home

"Morgan said he advises people to stay current on HOA fees until the mortgage holder forecloses on the home to avoid mounting legal and late fees."

[househelp]

Thank you! That was helpful. Disappointing, but helpful. I have a call scheduled with a lawyer tomorrow night.

[Bungle]

I'm on the board of my neighborhood's HOA and I can tell you that former homeowners are liable for all of their HOA dues/fines accrued while they still had ownership. Those that have left our neighborhood with a balance still have to pay or the management company will collect through wage garnishment.

That being said...I am not positive if this typical of every HOA because I've see some sales in other communities where the sale not only included the price of the house but any HOA fees due on the home from the previous owner. Hopefully there is no double dipping going on in these cases.

And just for record since I know many despise HOAs out there. I'm one of those board members that joined simply to better my community and make sure the management company and other board members do their job and to keep the power hungry folk at bay.

[aoeu00]

The only other way to erase the outstanding fees is through bankruptcy, but I don't think you want to go that route. Until the bank actually takes ownership (so they can sell it), you are liable. Once the bank owns it, then "they" have to pay the HOA fees until they sell it.

[smokemaster]

you could be responsible for the hoa legal fees+ interest.

[Bummer]

Originally Posted by Bungle

I'm on the board of my neighborhood's HOA and I can tell you that former homeowners are liable for all of their HOA dues/fines accrued while they still had ownership. Those that have left our neighborhood with a balance still have to pay or the management company will collect through wage garnishment.

That being said...I am not positive if this typical of every HOA because I've see some sales in other communities where the sale not only included the price of the house but any HOA fees due on the home from the previous owner. Hopefully there is no double dipping going on in these cases.

And just for record since I know many despise HOAs out there. I'm one of those board members that joined simply to better my community and make sure the management company and other board members do their job and to keep the power hungry folk at bay.

Good and very accurate advice, Bungle.

I also am on my HOA board and we definitely need more "get involved" members like you.

Unfortunately, most homeowners prefer complaining over the more positive approach of getting involved and helping.

[househelp]

Okay, we'll continue to pay it then until the foreclosure is complete. we could use the money but that seems the safest route to protect our credit and pay the least amount overall. THank you all.

[househelp]

Would you recommend telling the HOA that the home is foreclosing and that we'll continue to pay it until the foreclosure is complete - or asking what the ramifications are of not paying?