Posted on: 21st Oct, 2009 10:36 am
My house is being foreclosed on after a divorce. I could not afford the bills. I moved out and the lender has taken over a year to foreclose. I tried to keep paying the HOA dues, but I simply cannot afford it. How far can the HOA go to collect those past due fees? It won't be much longer before my house gets sold at auction or through short sale, but I know that the past due HOA dues will not be paid by the buyers. Will they come after me? I don't care about my credit. It's all jacked up by now. :roll:
It really depends on your mortgage arrangements. If your mortgage allows you to "walk away" then the lender can't come after you once the security (house) is sold. I understand that this is the case with most US mortgages.
In other parts of the world, the lender can still peruse you for any outstanding debts if the sale of the home doesn't clear them, but as I understand it, this is not the case in the USA - or at least with many mortgages.
In other parts of the world, the lender can still peruse you for any outstanding debts if the sale of the home doesn't clear them, but as I understand it, this is not the case in the USA - or at least with many mortgages.
>>If your mortgage allows you to "walk away" then the lender can't come after you once the security (house) is sold. I understand that this is the case with most US mortgages.
There isn't a single Lender in the United States that'd allow a borrower to walk away from their mortgage obligation.
There isn't a single Lender in the United States that'd allow a borrower to walk away from their mortgage obligation.
>>I know that the past due HOA dues will not be paid by the buyers. Will they come after me? I don't care about my credit.
Yes, they can receive a Judgement.
There are seven states that currently allow Home Owner Association (HOA) liens for delinquent dues to be placed in a superior position to a lender's first lien position.
These seven states are listed below and are known as "Superior Lien States". In other words, even if a mortgage lien is filed first, a lien for non-payment of HOA dues will supersede their first lien in these states.
Statutes in these states are based on section 3-116 of the Uniform Common Interest Ownership Act (CIOA). Section (b) of the statute specifically states that, with some limited exceptions, community association liens for non-payment of dues are "prior to all other liens and encumbrances on a unit."
The lien amounts are typically limited to six months of delinquent dues. The provision also allows for the speedy foreclosure of the unit without the need for further notification or notice to borrower, but with reasonable notice given to all lien holders whose interest is affected.
Alabama, Alaska, Colorado, Connecticut, Minnesota, Nevada and West Virginia
Yes, they can receive a Judgement.
There are seven states that currently allow Home Owner Association (HOA) liens for delinquent dues to be placed in a superior position to a lender's first lien position.
These seven states are listed below and are known as "Superior Lien States". In other words, even if a mortgage lien is filed first, a lien for non-payment of HOA dues will supersede their first lien in these states.
Statutes in these states are based on section 3-116 of the Uniform Common Interest Ownership Act (CIOA). Section (b) of the statute specifically states that, with some limited exceptions, community association liens for non-payment of dues are "prior to all other liens and encumbrances on a unit."
The lien amounts are typically limited to six months of delinquent dues. The provision also allows for the speedy foreclosure of the unit without the need for further notification or notice to borrower, but with reasonable notice given to all lien holders whose interest is affected.
Alabama, Alaska, Colorado, Connecticut, Minnesota, Nevada and West Virginia