[Moe Bedard]

Here is what Professor Shays had posted on that topic to a member asking the same question...........


Let me clear up the issue of HOA dues in a manner that may make some sense. Your HOA dues are assessed against the property and are also a personal debt. They actually have priority over your lender's loan under the rules relating to priority, absent one key fact. What I mean by that is the HOA dues are being charged pursuant to the Covenants, Conditions, and Restrictions (CC&R) that were recorded before any of the condo units were sold. But, virtually all CC&Rs contain a specific subordination, where their prior lien is eliminated for unpaid dues that existed before your first loan is foreclosed. Dues that accrue after the foreclosure sale become the obligation of the purchaser at the foreclosure sale (usually your lender).

So, HOAs can and do attempt post-foreclosure collection against the foreclosed former owner. That is why you will hear me recommending that you pay them even if you are going to walk and let the lender foreclose. Mitigating this expense is the fact that I recommend that you remain in the property until after the foreclosure.