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I owe almost 9,000 in hoa dues...i'm concerned about the lien if in fact they go that route?

Montclair, CA |

i owed for just one year's worth of dues...i got on a payment plan paying 220 plus 100 dollars a month to the hoa lawyers...i then received a letter saying dues where going up to 250...so now i had to pay 350 a month ...but i only continued to pay 320 a month ...now they want their balance in full

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Attorney answers 3

Posted

So you got behind, reached a settlement agreement and then breached the settlement agreement by not upping the payment when the HOA told you it was increasing the dues? The HOA has the right to foreclose on its lien, so you should either get a new payment plan going or consider seeing an attorney about a Chapter 13 bankruptcy to get caught up on the HOA dues.

First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. We also do other stuff and we do it well, but Congress wants me to post this notice. Second, nothing on this site is legal advice. You are not my client unless you enter into a written agreement signed by you and me.

Asker

Posted

13 or 7...i heard 7 was better...i talked to the collection lawyer...they told me to go to the board....board wants me to come up with a big amount upfront...they didnt tell me how much...i have no job ..on unemployement for now...so i dont have what thr asking for??

Carl H Starrett II

Carl H Starrett II

Posted

Chapter 7 will only temporarily stop a foreclosure. The HOA will still have its lien and could foreclose for nonpayment. With Chapter 13, you have the change to get a court ordered plan that allows you to get caught up over a period of up to 5 years.

Asker

Posted

thnx

Asker

Posted

btw....how does the hoa foreclose if my mortgage is "first"

Asker

Posted

and what would be the cost for chpter 13

Carl H Starrett II

Carl H Starrett II

Posted

The HOA is like a second mortgage in a sense. If they foreclosed, the HOA would own the property and the first mortgage would still be in place. if they didn't pay, then the bank would foreclose. Cost for a Chapter 13 is often decided either by the local courts or by whatever the attorney and client negotiate together.

Posted

The HOA has rules that govern what they can do and you have rules that govern what you can do. You agreed to comply with the rules when you purchased the home. You knew there was a good chance that dues would change over time. If you want to avoid losing your home, and/or perhaps a lawsuit, then make arrangements to cure what you owe.

If you feel that there is a problem with the HOA then you need to seek competent legal counsel.

My best to you.

This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.

Posted

The HOA can both record a lien as well as file a civil lawsuit for the unpaid HOA dues.

California Civil Code §1367.1(a) provides: "A regular or special assessment and any late charges, reasonable fees and costs of collection, reasonable attorney's fees, if any, and interest, if any, as determined in accordance with Section 1366, shall be a debt of the owner of the separate interest at the time the assessment or other sums are levied."

Also, notwithstanding more restrictive limitations placed on the board by the CC&Rs, the HOA board may increase regular dues by up to 20% of the HOA's preceding fiscal year without membership approval. (Civil Code §1366(b).)

Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This Avvo.com posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.

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