Should I pay HOA fees when property is on foreclosure?
I am letting go of my apartment because its over $50K upside down. I have tenants there now. Can I stop paying the association fees since the property will go on foreclosure anyways?? Is there anything else the Association can do besides putting a lien on the property? Could they harass the tenants there now?
If the property goes to foreclosure, any deficiency between what the lender is owed and what they receive will become the object of a law suit, and you’ll be liable. Therefore, the HOA fees (which the lender will end up paying) will come back to you.
You say you’re letting go because the property s upside down. So? You have it rented out, is the rent paying all or most of the mortgage? If it is, letting it go into foreclosure is akin to selling any other investment at the bottom of the market. Why do that? You trash your credit, when if you just held on, you could sell when the market is GOOD, and at least save your credit rating.
December 21st, 2009 at 3:42 pm
If all the HOA can do is put a lien on the property, it will be wiped out by the foreclosure. If it can sue you personally, you are going to have to pay.
References :
December 21st, 2009 at 3:53 pm
If the property goes to foreclosure, any deficiency between what the lender is owed and what they receive will become the object of a law suit, and you’ll be liable. Therefore, the HOA fees (which the lender will end up paying) will come back to you.
You say you’re letting go because the property s upside down. So? You have it rented out, is the rent paying all or most of the mortgage? If it is, letting it go into foreclosure is akin to selling any other investment at the bottom of the market. Why do that? You trash your credit, when if you just held on, you could sell when the market is GOOD, and at least save your credit rating.
References :