When to stop paying association dues?

[loser104]

Letting my condo foreclose here in michigan, currently paying my utility bills and association dues every month. Will continue to pay the utilities until I move out, but at what point should I stop paying the association dues? After the sheriff's sale? I will be filing a ch.7 closer to the end of summer.

[DeadManCrawling]

What state are you in?

Edit: Just reread. MI.

Below mostly still applies to MI, but will leave the FL info for others.

In most states, you need to pay HOA fees until the sale, in some states you are technically responsible even after the sale, until the lender actually changes the deed.

I ask about your state because a recent case in Florida gives more power to HOA's to force this issue. For FL foreclosures, it may be feasible to work with the HOA to speed the process, based on a recent ruling that allowed "reverse foreclosure" and forced the lender to take the property back.

[loser104]

Thanks, so I guess that I don't have to pay the dues during the redemption period, that's a little bit of good news. I will try and find some more info about it just to confirm this.

[limage]

If you are filing, stop paying them now as you can include them in your Ch 7 for past dues.

[DeadManCrawling]

limage is correct. You should stop paying them now, as they can and will be discharged when you file.

My original post was thinking about post-filing HOA fees.

You CAN discharge any HOA fees that are owed when you file. But after you file, you are responsible for any HOA dues until the foreclosure is complete.


It is a messy law.

[limage]

Deadman,
I stopped paying mine in April 09 (they were 552 a month!). They quickly filed a lien and I then included them as a secured creditor, surrendering the condo back to them. I don't think they can come after me for anything now, especially since they filed to foreclose prior to my CH 7 filing. I was discharged in January. My summary judgement hearing is next week and I figure I have about 6 weeks after that to get out.

[DeadManCrawling]

Again, it is a messy law.

I am not sure if their action is limited to "only" a lien and foreclosure, or if they can pursue you for post-discharge HOA fees on a personal level after foreclosure is complete.

Our case is a little different, in that the HOA has not started any action. The house is being foreclosed by BoA and, to my knowledge, we are responsible for HOA fees until BoA decides to finish it. It could be a while.

In your case, I do hope the HOA is limited to the lien and foreclosure for remedies. It also depends on how the HOA rules were written. Some HOA's are limited to liens and some are not. Our rules state that they will lien the property or sue us personally, so we are on the hook one way or another.

[limage]

Instead of paying the fees, I would put it in a savings account. If they sue you, the money will be there. If they don't, the money will be there.

I don't have a choice. I can't afford to pay. But if I could I would probably still not pay it.