HOA FEES AND HOMEOWNERS IN FORECLOSURE
It's not enough that HOMEOWNERS who are in FORECLOSURE are dealing with the emotional and financial strains of losing their home. Monthly reminders that come from the bank of how much they owe and what interest is accumulating is a good reason to want to avoid the mailbox.
But let's another element, and one that is not as suttle as the monthly bank statements. THE HOA!!! The HOMEOWNERS ASSOCIATION are also debtors in this transaction and at times, at least in the case of my current client, are harsh and intimidating.
One HOMEOWNER I'm working with has a home is going to auction next week. We attempted to sell it through short sale and had been successful until the buyer recently backed out. Argh! We're now back to Active status!
In the last few weeks he has received legal notices from the HOA to appear for hearings in the HOA's attempt to collect his debt. Well this is a double edged sword for my client and an area where I have had to say, you need to consult with an attorney.
At issue is whether he should continue to sell as a short sale with the consequence of the HOA eventually garnishing his wages if they are not made whole at the close of escrow, or, let the home sell at auction and the HOA be wiped clean and will have no recourse against my client. I'll keep you posted!
HOA FEES AND HOMEOWNERS IN FORECLOSURE
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