Can attorneys fees and interest continue to accrue for HOA fees when making a payment arrangement to pay the arrears?

Asked about 2 years ago - Capitol Heights, MD

The attorney for my HOA company has agreed to allow me to make payments to catch up on HOA fees that are in arrears, however, they are saying that attorneys fees and interests will continue to accrue until the arrears are caught up along with paying the regular fees, and they are giving me 2 years to catch up on paying almost $3000.00. How will I know when I have actually finished paying if these charges are going to continue to accrue and can they do that?

Attorney answers (3)

  1. Paula Jeanette Mcgill

    Contributor Level 17

    Answered . Put everything in writing regarding your agreement, including a pay down schedule. If you do that, you will know when you finish paying. Of course, you can craft a settlement that does not include the accrual of attorney's fees and interest. If they refuse to put the terms in writing, hire an attorney to negotiate on your behalf.

  2. Marc Robert Kivitz

    Contributor Level 8

    Answered . Yes, interest and attorneys fees can both accrue on an unpaid HOA obligation. Any agreement that you entered into already may contain provisions for those charges. Your homeowners association agreement that you probably signed upon your acquisition of the property may also provide for the inclusion of these charges. If you have not as yet signed an agreement for the repayment of these charges, then it may be possible for the repayment not to include these charges.

    In a bankruptcy context, any debt (but not a lien) for any HOA charges that exist as of the date of the filing of a bankruptcy case would be discharged. A debt for HOA fees that arise on and after the date of the filing of a bankruptcy case would NOT be discharged.

    It is possible in Chapter 13 and Chapter 11 bankruptcy case for liens for HOA fees that exist the date of the filing of a bankruptcy case to be avoided if they were obtained less than 90 days prior to the filing date of the bankruptcy case, or, if the amounts that are owed on liens that pre-date the HOA lien are greater than the value of the real property (rendering the HOA lien wholly unsecured). :There are many facts and circumstances that need to be examined to determine how best to address your concerns.

    This response is not a substitute for an in-person or telephone consultation about your specific legal issue. If you wish, please contact my office at 410-625-2300 or by email at mkivitz@aol.com. I would be pleased to discuss with you any other questions you may have.

  3. Stephen M Trezza

    Pro

    Contributor Level 17

    Answered . Yrs they can. The CCRs probably stipulate the terms regarding the HOA fees, read them.

    This answer does not create an attorney client relationship between you and I. I am not your attorney unless we... more

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