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HOA Repossession

Discussion in 'Condo & Co-op Issues' started by Owaji Ecurb, Apr 2, 2018.

  1. Owaji Ecurb

    Owaji Ecurb Law Topic Starter New Member

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    Jurisdiction:
    North Carolina
    I own a townhouse in Durham,NC. As a result of financial issues I was unable to make payments to the Home Owners Association. I communicated with the HOA’s attorney who stated that I have until April to start making payments to catch up however Inwould have to do so in a maximum of three months.
    I called the attorney in mid March and was told that the HOA now owns my home. I checked the county’s real estate records and sure enough, the owner of record is the HOA. I was never served with legal papers and our agreement to make payments was verbal. According to the co Net recess the deed was transferred to the HOA in February. I have a few questions, is it legal to have title transferred that the HOA without official court procedures? Do I still pay my mortgage? Is this considered a foreclosure? Can I get ownership back if I am able to catch up on my HOA dues? I am not low income however, my spouse is not able that contribute as much as needed due to low paying jobs. Please share any resources that to have. I have two small children and fear coming home one day and being met by a Sheriff. Thank you, in advance for any and all help.
     
  2. zddoodah

    zddoodah Well-Known Member

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    What you described is, at best unusual, and it would be folly to comment without some investigation to determine how exactly title was transferred into the HOA's name. I suggest you consult with a local attorney ASAP.
     
  3. Owaji Ecurb

    Owaji Ecurb Law Topic Starter New Member

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    Thank You. That is my plan. Wondering how they deed was transferred without due process. That just doesn’t make sense to me.

     
  4. army judge

    army judge Super Moderator

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    If you default on HOA or COA dues and assessments in North Carolina, the homeowners association can foreclosure on your condo or home.

    If you live in a private community setting (whether it is a condominium, townhouse, or single-family home) in North Carolina, usually you must pay dues and assessments to a homeowners’ association (HOA) or a condominium association (COA).

    If you fall behind in payments, in most cases the HOA or COA can get a lien on your home that could lead to a foreclosure.

    The North Carolina Planned Community Act (N.C. Gen. Stat. § § 47F-1-101 through 47F-3-122) governs HOA activities, while the North Carolina Condominium Act (N.C. Gen. Stat. § § 47C-1-101 through 47C-4-120) applies to condominiums created after October 1, 1986. (Except for § 47C-3-115, the provisions of the Condominium Act discussed in this article also apply to condos created before this date.) The two sets of laws are very similar.

    Most HOAs and COAs have the power to place a lien on your home if you become delinquent in paying the monthly dues and/or any special assessments (collectively referred to as assessments).

    In North Carolina, an HOA or COA is entitled to a lien for unpaid assessments and related charges once the amount due is 30 days late.

    The lien becomes effective when the HOA or COA files a claim of lien with the clerk of the superior court in the county where the property is located (N.C. Gen. Stat. § 47F-3-116(a), § 47C-3-116(a)).

    No fewer than 15 days prior to filing the lien, an HOA or COA must mail a statement of the assessment amount due to the property owner by first-class mail (N.C. Gen. Stat. § 47F-3-116(b), § 47C-3-116(b)).

    Notice Required Regarding Attorneys’ Fees and Costs
    An HOA or COA is entitled to recover the reasonable attorneys' fees and costs that it incurs in connection with the collection of any sums due, but first must notify the homeowner in writing of the association's intent to seek payment of attorneys' fees, costs, and expenses (N.C. Gen. Stat. § 47F-3-116(e), § 47C-3-116(e)).

    Contents of the notice. The notice must include the outstanding balance due as of the date of the notice and give the owner 15 days from the mailing date to pay the outstanding balance without the attorneys' fees and court costs. If the owner pays the outstanding balance within this period, then he or she does not have to pay attorneys' fees, costs, or expenses (N.C. Gen. Stat. § 47F-3-116(e), § 47C-3-116(e)).

    Payment plans. The notice must also give the owner the opportunity to contact a representative of the HOA or COA to discuss a payment schedule for the outstanding balance, as well as provide the name and telephone number of the representative (N.C. Gen. Stat. § 47F-3-116(e), § 47C-3-116(e)).

    Notice of Lien Also Required
    Before the HOA or COA files the actual claim of lien, it must serve (or attempt to serve) a copy of the claim of lien to the owner of the property by personal service or first-class mail (N.C. Gen. Stat. § 47F-3-116(c), § 47C-3-116(c)).

    I suggest you talk to a local attorney.

    You might also ask the HOA or COA attorney you previously spoke with for clarification on just how a lien ended up in an apparent foreclosure.

    You might have a defense if you weren't served properly.

    Again, this is where a NC attorney can be of great assistance to you.

    What Happens When a Homeowners’ Association Forecloses on a Claim of Lien? - Craige and Fox
     

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