I live in a condo I can no longer afford my home and have been unable to pay my dues, I tried working with the HOA who became nasty and placed a lien on my unit without me knowing until I went to list my condo in a short sale. I can not sell my condo in a short sale because I can not pay these dues. They have also tacked on late fees which I never signed or agreed too. So I may just deed in lieu of foreclosure my condo back to the bank.
I can then file bankruptcy chapter 7, my question would be will this make the liens go away as well or will I still have to pay that lien off? The lien at the time was for 900.00 but to date it is at 3,800.00 with all these fees on there. So are the fees even legal, and if I file chapter 7 will the lien be included in outstanding debt and be done?
Chapter 7 Bankruptcy Attorney
Bankruptcy as a general rule, does not remove liens, and liens from HOA often have a super priority claim that even extraordinary efforts cannot remove.
HOA will not only ruin your chance at a short sale, they will also stop the mortgage company from accepting a deed in lieu of foreclosure.
I appreciate the fact that you want to try & solve all these problems, but you are worrying about the wrong things. If you intend to surrender your condo, why worry about these liens. Just let them sit there and the legal process will take care of itself.
You will want to discuss your intention regarding the condo with your bankruptcy attorney so that you can properly time the filing of your bankruptcy case to give you the greatest benefit.
Hope this perspective helps!
4 lawyers agree
There is more. If you file for bankruptcy, you will still be responsible for post petition HOA dues that become due after you file until the property is actually taken in a foreclosure sale. See if the HOA will take possession until that happens. They can rent it out and use the money for dues.
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2 lawyers agree
Real Estate Attorney
I agree with the previous answers and if you let the unit go the liens stay on the unit not you.
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