Bankruptcy Attorney for HOA Foreclosures
A homeowner’s association, or HOA, is an organization of homeowners in a condominium, planned community, or subdivision. This organization has the power to create and enforce rules that apply to all community members. Anyone who purchases property that’s under the jurisdiction of the HOA is automatically required to become a member of the organization and follow all of the associated rules. In most cases, members of an HOA are also required to pay fees on a monthly or annual basis. In addition, some HOAs have the power to require additional payments when money is needed to carry out actions such as repairing sidewalks in the community.
If a homeowner fails to follow the HOA’s rules, the HOA can take steps to force the homeowner to comply. Likewise, if a homeowner falls behind in payments of dues or other assessments, the HOA can place a lien on the homeowner’s property and even foreclose.
Homeowners who are subject to foreclosure at the hands of an HOA can fight the process with the help of a qualified bankruptcy attorney. At Ted Machi & Associates, we can help you stop the foreclosure process by filing for bankruptcy, allowing you to resolve the issue without surrendering the property.
Past-Due HOA Fee Foreclosure
Some HOAs charge only small fees on an annual basis, while others expect homeowners to pay several hundred dollars every month just for the privilege of belonging to the association. Unfortunately, some homeowners find it hard to keep up with these fees and may fall behind in their payments – especially if they are facing financial hardships like unexpected medical bills or the loss of a job. When a homeowner falls behind in their payments, the HOA may place a lien against the homeowner’s property for the amount of the debt, along with the attorney fees, reasonable cost of collection, late fees, fines, and/or interest. In some cases, the HOA may even initiate foreclosure proceedings. HOAs can initiate foreclosure proceedings even if the homeowner does not owe a lot of money.
HOA foreclosure is a process that allows the HOA to sell a homeowner’s property in order to recover unpaid debt. If the HOA chooses to foreclose on your property, the law does not require the HOA to pay your mortgage before collecting the debts owed them, and you will remain liable for whatever mortgage balance remains.
If an HOA is foreclosing on your property because of unpaid dues, you have a few options to prevent the loss of your home. One option is to attempt to make alternative arrangements with the HOA so they won’t proceed with the foreclosure. Another option is to turn to our team at Ted Machi & Associates to stop the foreclosure proceedings by filing for bankruptcy. If you decide to file for bankruptcy, you’ll have the best chance of successfully saving your home and reducing your debt.
Condo Foreclosures by the HOA
Like any other property governed by an HOA, condominiums are subject to liens and foreclosure if you don’t pay your dues. In many cases, the HOA’s lien will take priority over the first mortgage on the property, allowing the HOA to force the sale of your condominium and take their money first. If the remainder of the proceeds isn’t enough to pay your mortgage, not only will you have lost your home, but you will also still be held responsible for the remaining mortgage debt.
As with foreclosures on other types of property, foreclosures on a condominium can be stopped by filing for bankruptcy with the help of our experienced bankruptcy attorneys. If you file for bankruptcy, you can typically prevent the sale of your condo and get extra time to get rid of your debts. You may also be able to stop a condo foreclosure by negotiating with the HOA directly. In either case, it is best to consult one of our attorneys at Ted Machi & Associates.
If you are facing an HOA-initiated foreclosure, you have alternative options. Filing bankruptcy will help you recover from your debts and avoid seizure of your home. To find out if bankruptcy is right for you or to discuss your bankruptcy options, contact Ted Machi & Associates today.