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!
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.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.
I agree with the previous answers and if you let the unit go the liens stay on the unit not you.
Only If and until you and I sign an Agreement for Legal Services, I am not your attorney. These answers are provided for informational and/or novelty purposes