missymo1980
New Member
My condo is in foreclosure and I am now being sued over home owner association fees. I'm not sure how to handle this. I assumed the debt would go the bank.
Being sued for hoa fees
- Thread Starter missymo1980
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Actually association dues are a personal debt. You are responsible to pay those not the bank. HOA's will put liens on property to guarantee the payment of these dues but they are similar to like a department store credit card for an analogy that has a contract that the property can be used as security. The only way to get rid of these along with the liability that the foreclosure might cause you is to file Chapter 7. The Chapter 7 will wipe out credit card debt, medical bills and even the HOA dues as long as you give up the piece of property. The lender might even come back on you with the negative loss of the property. Another problem that can happen in a foreclosure is you can get a 1099C from the lender and you will be taxed on difference of the amount that you owed from the amount the property was sold. I'm not trying to scare you, be proactive and protect yourself so you can have a future and move on and put this behind you.
FlaRiptide
New Member
Missy,
I don't know how it works in Texas, but here in Florida the HOA dues follows the property and not the owner. Thus when the condo sells in foreclosure, the title company would request an estoppel from the Homeowner's Association. Upon notification of the delinquent dues, this amount would be deducted from the closing proceeds.
The HOA can sue you yet they have no reason to. They will eventually get paid by the above procedure. If they do win a judgment against you they would be hard pressed to do anything other than placing a lien against the condo. Thus the HOA would be no better than before the suit!
Don't even worry about your credit rating getting damaged due to the civil suit. It doesn't even come close to comparing to the damage already done by your foreclosure.
To prevent the headache of a civil suit, you may wish to notify the HOA that they will eventually "automatically" receive the delinquent dues upon the foreclosure sale. Most homeowner Board Members do not realize this and simply think they MUST sue.
I don't know how it works in Texas, but here in Florida the HOA dues follows the property and not the owner. Thus when the condo sells in foreclosure, the title company would request an estoppel from the Homeowner's Association. Upon notification of the delinquent dues, this amount would be deducted from the closing proceeds.
The HOA can sue you yet they have no reason to. They will eventually get paid by the above procedure. If they do win a judgment against you they would be hard pressed to do anything other than placing a lien against the condo. Thus the HOA would be no better than before the suit!
Don't even worry about your credit rating getting damaged due to the civil suit. It doesn't even come close to comparing to the damage already done by your foreclosure.
To prevent the headache of a civil suit, you may wish to notify the HOA that they will eventually "automatically" receive the delinquent dues upon the foreclosure sale. Most homeowner Board Members do not realize this and simply think they MUST sue.
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