Chapter 7, Association Dues, Foreclosure

[moneytrouble]

I had a lien put on my condo for past due fees. This occurred around September or October. In early February I filed for chapter 7(still waiting for 61 day discharge after 341 meeting), and my home was included in the Chapter 7 filing. I have not made any payments on my home in 6 months, and the last payment was a partial payment. I moved out before my discharge, but foreclosure has not even started after 6 months, and the mortgage company has no set sheriff's sale date. Last year they started foreclosure proceedings immediately on the first day of the 4th month. As there is a lien against the property for the condo dues, will I be responsible for the dues after the day of the filing, or will those be included as part of the foreclosure? Do I need to notify the association that I have moved out?

-I did a search, but could not find an answer directly related to my issue.

[justbroke]

As there is a lien against the property for the condo dues, will I be responsible for the dues after the day of the filing, or will those be included as part of the foreclosure? Do I need to notify the association that I have moved out?

Yes, you are responsible for all HOA fees from the time of the filing of your petition, until the time the deed actually changes hands. This is how the law was written.

In reality, many lenders, upon foreclosure will pay the fees just to make sure they get a clean title. However, you claim a lien was placed for the back dues, so the HOA will only get that from the lender/bank/purchaser. The other fees are technically your responsibility until the deed changes hands.

[moneytrouble]

How do I speed up the foreclosure proceedings? I pay 130 a month in fees I cannot afford, and I am not using water or anything on the property. Do I send the fees to the association or to the lawyer handling my lien? I filed bankruptcy as I could not afford the fees, but now I find out I have to pay them for the next 4 months, and the previous 2. It seems after speaking with the mortgage company, they are going to stall even more on the foreclosing. How long do I have to pay the back fees? Will they file a lawsuit against me, if they are not paid before the deed transfer? I filed bankruptcy and gave up my home, as I have no money, but my home is not going anywhere, and I am stuck with it for many more months, and still paying on it. This is confusing.

[justbroke]

How do I speed up the foreclosure proceedings? I pay 130 a month in fees, and I am not using water or anything on the property. It has been 6 months no payment on the mortgages. I assumed I had to be out before the discharge, but what I am finding out, that this is not the case. I could have lived there another year rent free at this pace.

If I knew... I would have already forced my lender to take back my investment property! I've been waiting for just about a year so far! No sale date!

Usually, you can stay for 90, 120, 180, and even hundreds of days rent-free! These foreclosures are slow. Some banks started encouraging debtors to (please) stay in the home until they can sell it. (This is because many foreclosed and empty homes are trashed/gutted by thieves. The Banks like that someone is living there and paying for water, electricity, making sure it's in one piece. )

[moneytrouble]

I felt 6 months rent free was long enough and got out before my discharge. I will have to pay 780+ in back dues. Ouch!

[DeadManCrawling]

Sadly, there is no legal method to force a lender to foreclose faster. Or ever, if they choose not to.

We were discussing some of the reasons in another thread here:

http://www.bkforum.com/showthread.php?t=39581

I am aware of at least one case in which a debtor filed an AP through BK court and tried to force the lender to hasten the foreclosure. The motion was denied, since the court has no jurisdiction to force such, and there is no case law or legal theory as to how this could be accomplished.

Until now, it was unthinkable, I guess, that this would become a widespread problem.

As far as the HOA, they can try to sue you personally, but it is more likely they would attach a lien to the property and try to deal with the lender when it is eventually sold. However, that chance changes all the time, less and less in your favor. Some neighborhoods are literally faced with hundreds of foreclosures just like yours and have started suing anyone they can think of in response.

[moneytrouble]

How long do I have to pay the association dues? Will it be on my credit? I don't have the money to pay them now. Now I need a lawyer again to prevent garnishment, which is why I filed bankruptcy. Seems like bankruptcy and foreclosures are a perpetual process, and nothing is ever final. Why did I file??
-I spoke with my lawyer, she stated I was only responsible for the dues after the discharge. Maybe it is different in my state. She was in a hurry, so I could not discuss this in detail.