What happens to HOA dues and condo dues in a foreclosure?

What happens to HOA dues and condo dues in a foreclosure? All condominiums have mandatory condo dues that cover the insurance on the building, the maintenance and liability insurance on the common areas and amenities, and some of the utilities. Many townhomes and subdivisions also have mandatory HOA (homeowner association) dues to cover amenities and common areas. If dues are mandatory, they are an automatic lien on the property, and the association is not required to file a separate lien each year. When a property is foreclosed, all current and previous condo dues and HOA dues are legally wiped out and unenforceable as liens against the property up to the date of the foreclosure sale. The new owner as of the foreclosure date (either the foreclosing lender or a purchaser on the courthouse steps) becomes responsible for all dues, assessments, and initiation fees beginning on the foreclosure date. These dues must be confirmed and paid by the REO (Real Estate Owned) seller, and this usually occurs when the property is resold. Some associations even charge a “foreclosure fee” in an attempt to recover some of the lost revenue from the unpaid dues of the previous owner. The dues, fees, and other assessments are controlled by the Association, its Declaration or By-Laws, or the Management Company for the Association.