HOA foreclosure fees
Homeowners associations are much more prevalent today than perhaps a few decades ago. Today, if you buy a condo or a townhouse or even many average single-family homes; like it or not, you are most likely part of an HOA community. That means there will be several fees that you will have to pay in addition to your mortgage. So what happens when your home forecloses? What fees can you expect to owe your HOA? We will proceed to discuss this issue right now.
To begin, we will explain the basic purposes of HOAs. They are legally bound to manage and oversee the maintenance of their specific community in accordance with the laws of their home state. Each HOA generally has its own set of rules and restrictions that apply to each household within that community; including YOURS. In addition to being the party that enforces these rules and restrictions; HOAs are responsible for collecting any fees or assessments that are associated with each home within their community. If this sounds a bit over the top and like something you are not willing to comply with; We strongly suggest that you research if your prospective home is managed by an HOA BEFORE YOU PURCHASE !! If you are unfamiliar with their legal terminology at some point before or after purchasing your home, consult your real estate attorney.
It is vitally important that you know; If a HOA has a bond on your property, you LEGALLY HAVE the right to foreclose on that bond. This is true even if you are paying a separate mortgage fee and are on time with those payments. The details involved with these procedures vary depending on state laws and the rules first detailed by your HOA. Again; If you don’t like these HOA concepts, DO NOT move into a house where an HOA exists! That is the best way to avoid all these problems. Nevertheless; On the positive side, a community can be much more well maintained and more enjoyable to live if an HOA is in charge of it. So there are definitely good points to having a HOA.
There are legal options available to you if your Homeowners Association initiates a foreclosure proceeding against you. For full details; We again urge you to contact your attorney. However, in general; One option is to have an expert legally examine your accounting records. This may prove if incorrect accounting has led to this foreclosure action. If the HOA does not comply with this legal request, your foreclosure proceeding could be dismissed. Another reason for the possible dismissal of this action could be if your HOA failed to comply with state laws when it filed a foreclosure proceeding against you. This can also be legally tested and questioned by an official expert in these matters. In either case, you should be prepared to go to court if necessary to fight for your home.