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