Should you pay the HOA/Condo Association?

One question I often get is this:

"I'm in foreclosure. Not sure I'm keeping the house. Should I keep paying the Homeowner's Association (or Condominium Association, which, for the purposes of this post, I'll just call the HOA)?"

I advise that you do pay your HOA if possible. HOAs can be nasty, even when you're in foreclosure, and they're not an enemy you want to deal with.

You've probably noticed that in your foreclosure case, the HOA is named as a defendant with you. As a defendant, the HOA has a right to participate in your foreclosure case. And when HOAs don't get paid, their main goal in your foreclosure case is to get your house sold, ASAP, so that they can get an owner of the property that does pay the HOA.

Take this example: A lawyer friend of mine is working on a modification for a client. The bank seems to be in agreement on the mod. Problem is, a foreclosure sale date is coming up. Luckily, the bank actually agrees that they will cancel the foreclosure sale, to give the homeowner more time to complete the modification. So bank agrees, attorney agrees, and all is fine, right?

Not so fast. On the day of the hearing to cancel the sale, guess who shows up? The HOA. And they want the house sold. They convince the judge to sell it. Result: Homeowner loses his home and the modification, even though he and the bank were in agreement...all because the HOA wasn't getting paid.

Also remember that if you're renting your property, the law now allows an HOA to compel your tenant to pay rent to it, instead of you.

And remember, you don't know what the future holds. Let's say you don't want the house (or can't afford it) today, so you stop paying the mortgage and your HOA dues....well, 8 months later, you get a better job, or you just change your mind. You want to keep the house. You try for, and get a modification. Congratulations! .....Except all this time, you haven't been paying the HOA. So now, they foreclose on thier HOA lien, and you lose the property anyway. And when it comes to dealing with foreclosures, HOAs are much more difficult to defeat in court than banks.

So, given you don't know what the future holds, I'd strongly suggest you pay the HOA. They're just not an enemy that you want to have, and being current with them and keeping them off your back, can get you more time in your home, and a better chance at keeping your home if you modify your mortgage loan.

Call us today for more info at (954) 987-0515 or check us out at http://www.weaverlegalgroup.com/.