Chapter 7 and HOA dues

[Anonymous]

My mom is in the process of a chapter 7, I don't think she is completely understanding what the lawyer is telling her and want to see if anyone hear can offer insight.

- She owes about 2500 to her condo HOA, according to her this will be in her BK, BUT the Association can sue her for it later even after it was discharged.

-Second she is under the impression that since she is giving up her condo through the BK, that after the filing date she is free and clear and owes nothing else on it. MY understanding is that she would be responsible for the taxes and HOA as long as it takes to actually remove the title from her name and into the banks. 

I just want to make sure she has a clear understanding of her responsibilities before, during, and after this process.

thanks! 

[bstone]

Someone with more knowledge correct me if I'm wrong, but I believe past HOA dues (the $2500) would be discharged and non-collectible in the future.  Dues after she files are her responsibility 100%, and all taxes are her responsibility, both past and future.

If she doesn't understand she needs to ask her attorney to clarify this, this is what she is paying them for.

[Anonymous]

Thanks for the feedback. I have also redirected her to ask her attorney, but she is a bit **difficult and believes everything is the way she says it is, or in this case it’s the way SHE understands it. lol. 

[michaels88369]

She is responsible for the HOA dues. The dues are not dischargeable from what my attorney has said. I am still responsible for them and I am in ch7 right now. I love in Florida not sure if that makes a difference or not.

[Anonymous]

Her personal liability will be discharged, but likely the lien attaching to the real property will still be valid. This means they can't place a judgment on her individually, but they could likely foreclose on the property with the HOA lien. The caveat here is the each state is different. I am a creditor lawyer that had to file Chapter 7 due to a divorce.

[ezdriver]

I have run a condo HOA and updated all legal docs during my tenure. I was also a mortgage broker and I'm now a sales counselor for a national home builder. I was recently personally involved in helping a cousin who bout a property in Fort lauderdale through a foreclosure auction ... only to come out losing because of HOA dues. Just FYI on my background.

The ch7 will protect her from liability for the dues but the HOA will simply place a lien on the condo, and eventually foreclose on it, in order to collect the unpaid dues. Until the foreclosure, she will remain the owner ... but without any liability for th eunpaid dues.

I have seen investors buy the lien and then files foreclosure to take possession of the property. The HOA does not care who pays the dues, just that they are paid. Have you thought of paying the dues yourself and taking possession of the condo?

[despritfreya]

Pursuant to 11 U.S.C. 523(a)(16) the debtor will be responsible for all post petition HOA dues/fees/assessments until such time as the Debtor no longer has an interest in the property.  Pre petition dues/fees/assessments are subject to the discharge injunction of 11 USC 524 however, any lien that the HOA is entitled to assert against the property will survive the discharge and the HOA can exercise its rights under State law as it relates to the lien.

Des.

[Fletcher2]

The bank has to foreclose to strip your name off the title (unless you agree to a deed in Lieu or short-sale), and until your name is stripped off, you are responsible for HOA and they do not play—someone is going to pay.

Even if the house/condo sat there for two years, the monthly liability remains.