It would be of great benefit to you to meet with an attorney to discuss all of your options, of which you have several. But, to answer the specific questions, yes, you can speed things up by short selling your unit rather than waiting for the lender to foreclose. A short sale could be completed in less than 90 days, while waiting for foreclosure could take at least 6 months. The HOA dues, unfortunately, are a personal obligation. So, time is not on your side. But, you still have options. So, consider meeting with an attorney to discuss alternatives.
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When dealing with an HOA, it is important to consult with a skilled debt settlement / bankruptcy lawyer. There is not a cookie cutter answer to your question. The language of your CC&Rs is the first thing that needs to be reviewed. You need a full analysis of your various options and the consequences of each. Your options may include: do nothing and walk away, file bankruptcy, attempt debt settlement, etc. This is just a brief outline of the issues involved. I hope this helps you understand why seeing a lawyer in these types of situations is critical.
I won't get into it here - but my law partner has written a free e-book you might want to download from this link: http://gprattorneys.com/the-whole-truth-about-bankruptcy/
The Arizona lawyers who have given their time to respond to you here on AVVO, including me, can all probably help you. So, call 2 or 3 of us and hire whomever you're most comfortable with.
Mr. Greeves is licensed to practice law throughout the state of Arizona. His office is in Tempe. His phone number is 480-345-8100 or his email address is email@example.com. His website is www.gprattorneys.com.
Mr. Greeves is licensed to practice law throughout the state of Arizona. His office is in Tempe. He is authorized to handle IRS matters throughout the United States. His phone number is 480-345-8100 or his email address is firstname.lastname@example.org. His website is www.gprattorneys.com. Please note that this answer does not constitute legal advice, and should not be relied upon. Each state has different laws, every situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
You should definitely consult an attorney to discuss your options as far as short sale, foreclosure, bankruptcy, etc. You may also want to look into a Deed in Lieu of Foreclosure....this is another way to speed up the process of giving a property back to the lender. Again, contact an experienced real estate attorney to assist you with this because there are rights you need to ensure are protected.
Also, review your CC&Rs about special assessments. Sometimes there are caps on how much special assessments can be, or how the Board goes about getting approval for these special assessments. Many times, the HOA does not follow proper protocol, thus potentially relieving one's obligation to pay the special assessment until they do it correctly (which could buy you some time and ultimately allow you to avoid bankruptcy). Imposing a $12k special assessment for roof repairs sounds pretty high since many contractors will charge far less than this to re-roof a 1,800+ square foot single family residence.
I think you would be wise to contact an experienced attorney to discuss all of your options prior to making any decisions.
Jennifer Peddy Berg
The Peddy Berg Law Firm, PLLC
Ms. Peddy Berg is licensed to practice law in Arizona and California (currently inactive); and her office is located in Scottsdale, Arizona. You can contact Ms. Peddy Berg by calling her office at (480) 382-3109; or contacting her through her website www.thepeddyberglawfirm.com. In accordance with AVVO terms and conditions, this answer does not constitute legal advice, and should not be relied upon. Answering this question does not create an attorney-client relationship with Ms. Peddy Berg or The Peddy Berg Law Firm, PLLC. Each state has different laws, every situation is specific to its given facts, and it is impossible to evaluate and provide advice on a legal issue without first doing a full analysis of the facts and documentation via an individual consultation.
If you are serious about walking away you can do a deed in lieu of foreclosure and your obligation to pay HOA dues ends once you sign the condo over. But be aware that the lender may 1099 you for the balance owed, or may try to collect the balance unless they specifically agree in writing not to as part of the deed in lieu process.
The general advice above does not constitute an attorney-client relationship: you haven't hired me or given me confidential information by posting on this public forum, and my answer on this public forum does not constitute attorney-client advice.