Foreclosed condo, HOA suing for back fees

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adam12

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My condo just became foreclosed - it had been listed with a real estate agent as a short-sale property for about a year. I bought it as an investment as a rental property 4 years ago, but the tenant stopped paying rent and it took 6 moths to evict him - winter time, sheriff understaffed, etc. caused huge delays In short, I could not afford it and it had to go, the only option left was to let it become foreclosed. I stopped making payments to the bank and HOA in January 2010. I need to add that I also have a house that carries a mortgage (over $100k), but never was late on a single payment.

Yesterday, I was served with a summons to appear in court for HOA back fees, penalties, attorney fees, courts fees, etc. A letter I received two months ago from a lender announced that the property will be placed for sale at public auction and the buyer will be responsible for all HOA back fees, penalties, attorney fees, etc. Called the real estate agent today and was told that the property was sold - not sure if someone bought it or the bank took the ownership. Have hard time contacting the real estate agent again. Will be contacting the lender tomorrow or Monday to find out the details of the sale.

Do I need to hire a lawyer to represent me in court? Or, should I just show up in court and agree to pay what I owe to HOA? Do I have any other options? I live in Illinois in Cook County if it helps. Any help will be greatly appreciated. Thx. Adam.
 
Have you considered bankruptcy?

At this point, what with a foreclosure, bankruptcy might be your best bet (if you qualify)!

How much of your money does the greedy HOA seek?
 
HOA is seeking about $2500 plus associated penalties and attorney fees. I don't want to file for bankruptcy. Thx.
 
HOA is seeking about $2500 plus associated penalties and attorney fees. I don't want to file for bankruptcy. Thx.

I suppose the entire amount they want approximates less than $5,000.

If that's the case, you have to decide if it's worth paying an attorney to defend it for you.

If you don't pay, you'll lose to their attorney pro se. HOA's are Nazis. They are very hard to defeat.
 
Foreclosure is a court process. Filing times vary depending on your area, but typically foreclosure takes from 6 months to a year. .....
 
I don't know about Illinois, but the way it works in Florida is as follows:

HOA dues are attached to the property and do NOT follow the owner. Thus when the home is sold the title company will contact the HOA to request an estoppel. The HOA will oblige by informing them of the amount due. The HOA dues in arrears will then be deducted from the seller's equity. Therefore, in a foreclosure the bank will ultimately pay the HOA dues. This doesn't mean that the HOA can't sue for the annual dues, it just means it is not necessary to sue. They will ultimately get their money by waiting it out. If you no longer own the property, then you are no longer responsible for the unpaid dues.

Penalties, etc., do NOT follow the property and DO follow the owner. Thus the owner can be sued for this.

I'm not an attorney but have been treasurer for my HOA and thus know how this all works.
 
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