If delinquent on HOA fees & mortgage is foreclosed, are we personally liable for HOA fees accumulated prior to the sale?

Asked over 3 years ago - Buffalo Grove, IL

Servicer filed foreclosure complaint in June '10. We were served by publication in July/Aug '10. We filed appearance in Aug '10 & have yet to receive any notice of anything related to the foreclosure. The court has not issued Judgment for foreclosure. 3 weeks ago, Plaintiff requested, and Court granted, a continuance until late June '11 to give Plaintiffs "time to present the necessary documents adn affidavits for prove-up". This the second such continuance granted by the Court. We're in the loan modification process & waiting for a letter with temporary mod terms. Condo value is at least 10% under the mortgage amount. We are 1 month behind in HOA fees... If we stop paying the HOA fees and the house is eventually foreclosed, are we on the hook? What are the remedies available to the HOA?

Attorney answers (4)

  1. Rick Lee Rogers

    Pro

    Contributor Level 8

    1

    Best Answer
    chosen by asker

    Answered . HOAs have become very aggressive in recent years, perhaps out of necessity. Many will file lawsuits and evict you long before the foreclosure process can put you out of your home. We recommend to all of our clients they keep up with HOA fees, even if they can't make mortgage payments. Otherwise, the HOA may lock you out of your home. That is not an uncommon event today. Good Luck,

    Rick

  2. Sandra Margaret Emerson

    Pro

    Contributor Level 11

    Answered . Yes, you would be personally liable for condo assessments and fees because you remain the owner of your condominium until the mortgage holder completes the foreclosure and obtains the deed to your property. Many condominium associations these days are filing suits for unpaid assessments, so you should be sure to pay the assessments.

    This answer is not intended to create an attorney-client relationship.

  3. Theodore Lyons Araujo

    Pro

    Contributor Level 20

    Answered . You are liable just as if there were a deficiency on the mortgage.

  4. John Dale Wiley

    Contributor Level 10

    Answered . IF they chose to pursue you, it is likely that the homeowner's association could get a judgment for unpaid fees. However, they may choose to look at it as throwing good money after bad. If you are worried about this, you might be able to negotiate with them prior to making up your mind about what to do.

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