HOA Lien/Foreclosure

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Latest post 08-29-2006 11:13 AM by anon3. 5 replies.
  • 08-28-2006 5:43 PM

    HOA Lien/Foreclosure

    Our HOA has placed a lien on our prperty for non-payment of assessments and monthly dues. I have been unemployed and therefore unable to keep up with these and they have fallen behind by 6 months. They are now trying to foreclose our property even though we have tried to make a payment plan through their attorney's office. We owe less than $300.00 in back-dues, and they have tacked on an additional $2000.00 in attorney fees, which will increase if it goes to court for forclosure proceedings. We were served on the 12th of this month. I contacted their attorney's office to set up a payment plan which they had to submit to the HOA for approval. The HOA did not respond for 2 weeks. We have been informed that the HOA will not accept any payment plan, they want a lump sum OR foreclosure proceedings if they do not receive the sum by 20 days from service of the papers. We were informed of this with only 4 days to come up with the whole amount. 2nd mortgages take up to 30 days to fund... HELP!!!

  • 08-28-2006 6:11 PM In reply to

    re: HOA Lien/Foreclosure

    The problem is that they don't have to accept a payment plan.

    You should have been prepared for the possibility that the HOA would say "no" when you were initially served on the 12th.

    Perhaps you can try to negotiate with the attorney as to the amount of the fees.

    If you are unemployed, I wouldn't count on the second mortgage coming through.

    I'd beg or borrow the $$$$ from friends-family.

    Talk with a local real estate attorney if necessary.
  • 08-28-2006 9:34 PM In reply to

    re: HOA Lien/Foreclosure

    Our HOA has placed a lien on our prperty for non-payment of assessments and monthly dues. I have been unemployed and therefore unable to keep up with these and they have fallen behind by 6 months.

    They are now trying to foreclose our property even though we have tried to make a payment plan through their attorney's office. We owe less than $300.00 in back-dues, and they have tacked on an additional $2000.00 in attorney fees, which will increase if it goes to court for forclosure proceedings. We were served on the 12th of this month. I contacted their attorney's office to set up a payment plan which they had to submit to the HOA for approval. The HOA did not respond for 2 weeks. We have been informed that the HOA will not accept any payment plan, they want a lump sum OR foreclosure proceedings if they do not receive the sum by 20 days from service of the papers. We were informed of this with only 4 days to come up with the whole amount. 2nd mortgages take up to 30 days to fund... HELP!!!


    There are active HOA fora at
    ahrc.com/ubbthreads/ubbthreads.php?Cat=&C=1
    You might find helpful information there. There are sections for general questions, about vendors, government, courts, investigations, miscellaneous. They are also developing state specific lists. There are at least a few questions that deal with your question.


    They are now trying to foreclose our property even though we have tried to make a payment plan through their attorney's office.
    One suggestion is to pay the entire amount of dues and fees, using perhaps a cashier’s check and return receipt certified mail. Label your check that it is for dues and fees, and include the months even.
    The attorney fees are supposed to be different, they are NOT supposed to be able to foreclose for attorney fees, but unless your check is labeled for dues and fees, they will put that amount on attorney fees. SO LABEL your check. Make a copy, keep a record. Find out for sure the correct address to send it—in fact, take a witness and hand it to them, and get a dated, signed receipt. Make one of those and take it with you just in case they can’t find the receipt book.

    Is your receipt labeled attorney fees? It may help you a lot if it is.

    They WILL foreclose if you do not pay. If you have the proof that you did pay the dues and fees within their time freame, you have SOME legal chance of surviving. Nest time, tighten your belt and pay the dues before anything else.
    You didn’t say your state, but you might consider going public with this.
    Go to that HOA board and post your question there, read some of the other posts for more thoughts.
    if you need to hire an attorney, hire a Business or contract law specialist attorney. Do NOT go with a Real Estate attorney. A HOA is a corporation and the rules are contractual.
  • 08-28-2006 9:40 PM In reply to

    re: HOA Lien/Foreclosure

    Do not misunderstand me--the attorney fees have to be paid, and right away, too, but getting the dues and fees paid immediately is of paramount importance.
    Perhaps the attorney would then reduce his fee since he what--wrote a letter? But don't count on it.

    When you get your attorney, if you do, make sure he is NOT a CAI attorney--those guys are generally anti-home-owner. Make sure he has no conflict of interest.

  • 08-29-2006 11:13 AM In reply to

    More [=+=] re: HOA Lien/Foreclosure

    The attorney's fees (plus interest) may be added on to YOUr own assessment for the next dues collection, as a special assessment, making your dues not $100, but that plus the outstanding attorney fee and interest.

    Your state MAY have an HOA ombudsman, or you may be able to use an arbitration of some kind. Some states are allowing that. /they charge as much as $500 or so to get started. You might be able to find out about those by contacting your state representatives.

    Do not delay--if they can foreclose, they will. Have you considered going public with this, as in maybe a factual, non-emotional, letter to the editor? If you put some public light on this it may help you, it may cause them to come back harder on you.
  • 08-29-2006 11:30 AM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 48,978

    re: HOA Lien/Foreclosure

    Inmany respects a HOA is a law unto itself--and they can impose harsh conditions and refuse to cut you any slack--unless you can find a rule inhte HOA or state laws to the contrary. Tacking on $2000 of attorney fees seems high-- but if they are allowed by the rules I think you'd have an uphill problem to et them removed.

    The HOA need not cut you any slack as to your timeframe to come up with $$.

    I'd agree--- you need to beg or borrow the funds to avoid compounding the issues.

    Perhaps, long shot--if the HOA is overreaching on legal fees and you have an activist lawyer in tow, said lawyer may be able to get HOA to abate fees in return for full payoff of other items--after all HOA may not want to test whopping fees in front of some liberal judge . But I don't know your lawyers billing arrangements--



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