Clarification On When to Resume HOA Payments

[nioka]

I will be filing chapter 7 as soon as the bank or HOA forecloses.

I need to clarify when I must resume making the HOA payments under either situation. I understand that pre-HOA fees/fines are discharged up to the filing date and not the discharge date. If that is so does my attorney notify the HOA when I file? I get an online statement rather than a bill. The statement shows a total of what is due and not the monthly due amount.

Secondly, should the HOA foreclose first and then I file chapter 7 would I be responsible for post HOA fees while I wait for eviction?

[bcohen]

Since you have (wisely) decided to NOT file for bankruptcy until either the mortgage lender or HOA foreclose, you will not owe another penny to the HOA. If the mortgage lender forecloses, then the deed will be changed to the purchaser's name, or to the bank's name, if they are the only bidder. If the HOA forecloses, then they will not be able to SELL the property to anyone, because their lien is subordinate to the mortgage lien, however your name will be removed from the deed, and the HOA will take over your interest in the property. The HOA will most likely leave the property vacant until the mortgage lender forecloses, but they could possibly rent it out.

In either case, at the time you file for Chapter 7 bankruptcy, the house will no longer be in your name. Thus, there will be no HOA dues/fees/penalties going forward. Any amounts which are owed will be pre-petition debt, and will be discharged!

[nioka]

bcohen,

Thanks again.

I do not plan to leave this house until I am sure my name is off the deed. I assume after foreclosure and filing chapter 7 no action can be taken, (eviction), until after discharge. Hopefully during that period I will be able to confirm the deed has been changed and I can move on. Am I correct?

[bcohen]

Yes! The automatic stay will protect you, but not for long. Expect to move within 30 days of the house transferring title, or possibly 60 days if you file immediately after the sale.

[keepmine]

bcohen,

Thanks again.

I do not plan to leave this house until I am sure my name is off the deed. I assume after foreclosure and filing chapter 7 no action can be taken, (eviction), until after discharge. Hopefully during that period I will be able to confirm the deed has been changed and I can move on. Am I correct?

Keep something in mind here. Just because you default, doesn't mean your lender will immediately proceed with foreclosure. They must follow state law and depending on the hoops they have to jump through and, how aggressive they are, it may be a year or better before foreclosure is complete.

[nioka]

Keepmine,

From what the attorney's I have talked to have told me my bank is especially slow to respond.

However, I think the HOA will move sooner than the bank.

One way or the other when the name on the deed changes I am checking out. My main concern and objective is to leave here without any obligation to the HOA.