HOA selling my property for 6k debt? - Loan Modification Forum

proroad · 11-01-2009, 10:39 AM

My HOA sent my $6000 debt to an attorney, who has filed papers to sell my property on November 2nd 2009. I have been notified extensively (certified mail) that the property will be sold on that date. for a 6k debt..

My first with B of A is 355k. -no apers or threats from them..

my second with Litton is 80k. -no papers or threats from them..

What the heck is the HOA sale gonna do? sell a tree in my yard?

Are they just trying to scare me?

Brian

SimonSaysSo · 11-01-2009, 11:19 AM

Quote:

Originally Posted by proroad

My HOA sent my $6000 debt to an attorney, who has filed papers to sell my property on November 2nd 2009. I have been notified extensively (certified mail) that the property will be sold on that date. for a 6k debt..

My first with B of A is 355k. -no apers or threats from them..

my second with Litton is 80k. -no papers or threats from them..

What the heck is the HOA sale gonna do? sell a tree in my yard?

Are they just trying to scare me?

Brian

Wow, never heard of this. The HOA doesn't actually own the home or the land it sits on. It seems the most they would be able to do is put a lien on the property.

davephx · 11-01-2009, 02:13 PM

I assume the HOA already had put a lien on the property as they often do. Not sure they even have to notify you ahead of time.

As I understand it yes an HOA can foreclose on their lien anyone can.

But they have to payoff all the underlying financing. So only makes sense if there is equity so could sell payoff the other mortgage/s and than the HOA gets paid.

lkszip · 11-01-2009, 05:46 PM

I believe that the HOA can foreclose --- have you looked into your bylaws or CC and R's. I know we have one homeowner behind by a few thousand $$ and it was discussed at the meeting the right to sell the property ... not sure but definitely look into it further.

davephx · 11-01-2009, 06:35 PM

I think the HOA has the right under State laws at least AZ, not just in the CCR's.

proroad · 11-01-2009, 10:44 PM

Yes, the HOA already has a lien for past due amounts, so does the IRS for another 80k.

There is no equity in the home, it is probably under by at least 200k.

I agree from all that I have read in the past. It doesn't make sense unless they pick up the first and second, which no smart businessman would do.. Right?

Brian

flagirl4444 · 11-01-2009, 11:36 PM

In many states, an HOA lien is considered a "super lien" and automatically takes priority above the mortgage lien, similar to a tax lien. What that means is that they are the first in line to be paid from the proceeds of a foreclosure. The bank would get the remaining proceeds.

dan m · 11-02-2009, 07:33 AM

HOA's are evil....

proroad · 11-02-2009, 08:30 AM

Well, I am in California. I hope an HOA board doesn't have that kind of power to further destroy the value of this B of A loan.

Almost kidding.

Brian

proroad · 11-03-2009, 01:20 AM

bump, Ideas? Does anyone have any solid info on where this may be headed or how to find out if it was sold. I am in LA county, California.

davephx · 11-03-2009, 01:43 AM

Appears at least as of about a year ago no super lien for HOA's in CA.

Some brief research:
There are many states that have what is called a "super lien" in their state law, meaning that HOAs can collect up to 6 months of delinquent assessments from a lender that forecloses, even if there are not enough proceeds to cover the debt. California HOAs could benefit from such a lifeline, but the legislators in power will not hear of it. From California Condo & HOA Law: Is There A Stranglehold on HOAs in California?

The only time that the Association is NOT in second position behind the mortgage companies are in states where the homeowners associations have been granted "super lien rights", and these states are located on the East Coast--New York, for example, is a super lien state.

California - The Court of Appeal’s recent decision in Thaler v. Household Finance Corp. is a good news / bad news type of situation. The good news is that the Court of Appeal has finally made a decision dealing with an important assessment lien priority issue. The bad news is that the Court of Appeal made a decision that is detrimental to community association assessment liens. (not a super lien)

Can not find however a listing of states that have.

Colorado definitely is a super lien state lots of topics about it.

To check a state google (your state) "super lien"

proroad · 11-03-2009, 08:55 AM

Thanks Dave, I will try to update as I get more info.

Brian

11-01-2009, 10:39 AM	#1 (permalink)
proroad Senior Member Join Date: Dec 2008 Posts: 32 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	HOA selling my property for 6k debt? My HOA sent my $6000 debt to an attorney, who has filed papers to sell my property on November 2nd 2009. I have been notified extensively (certified mail) that the property will be sold on that date. for a 6k debt.. My first with B of A is 355k. -no apers or threats from them.. my second with Litton is 80k. -no papers or threats from them.. What the heck is the HOA sale gonna do? sell a tree in my yard? Are they just trying to scare me? Brian

11-01-2009, 02:13 PM	#3 (permalink)
davephx Senior Member Join Date: Jul 2009 Posts: 1,146 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? I assume the HOA already had put a lien on the property as they often do. Not sure they even have to notify you ahead of time. As I understand it yes an HOA can foreclose on their lien anyone can. But they have to payoff all the underlying financing. So only makes sense if there is equity so could sell payoff the other mortgage/s and than the HOA gets paid.

11-01-2009, 05:46 PM	#4 (permalink)
lkszip Senior Member Join Date: Sep 2009 Location: Northern CA Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? I believe that the HOA can foreclose --- have you looked into your bylaws or CC and R's. I know we have one homeowner behind by a few thousand $$ and it was discussed at the meeting the right to sell the property ... not sure but definitely look into it further.

11-01-2009, 06:35 PM	#5 (permalink)
davephx Senior Member Join Date: Jul 2009 Posts: 1,146 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? I think the HOA has the right under State laws at least AZ, not just in the CCR's.

11-01-2009, 10:44 PM	#6 (permalink)
proroad Senior Member Join Date: Dec 2008 Posts: 32 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? Yes, the HOA already has a lien for past due amounts, so does the IRS for another 80k. There is no equity in the home, it is probably under by at least 200k. I agree from all that I have read in the past. It doesn't make sense unless they pick up the first and second, which no smart businessman would do.. Right? Brian

11-01-2009, 11:36 PM	#7 (permalink)
flagirl4444 Senior Member Join Date: Sep 2009 Posts: 153 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? In many states, an HOA lien is considered a "super lien" and automatically takes priority above the mortgage lien, similar to a tax lien. What that means is that they are the first in line to be paid from the proceeds of a foreclosure. The bank would get the remaining proceeds.

11-02-2009, 07:33 AM	#8 (permalink)
dan m Senior Member Join Date: Aug 2009 Location: Manteca- California Posts: 134 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? HOA's are evil.... __________________ A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government. — George Washington

11-02-2009, 08:30 AM	#9 (permalink)
proroad Senior Member Join Date: Dec 2008 Posts: 32 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? Well, I am in California. I hope an HOA board doesn't have that kind of power to further destroy the value of this B of A loan. Almost kidding. Brian

11-03-2009, 01:20 AM	#10 (permalink)
proroad Senior Member Join Date: Dec 2008 Posts: 32 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? bump, Ideas? Does anyone have any solid info on where this may be headed or how to find out if it was sold. I am in LA county, California.

11-03-2009, 01:43 AM	#11 (permalink)
davephx Senior Member Join Date: Jul 2009 Posts: 1,146 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? Appears at least as of about a year ago no super lien for HOA's in CA. Some brief research: There are many states that have what is called a "super lien" in their state law, meaning that HOAs can collect up to 6 months of delinquent assessments from a lender that forecloses, even if there are not enough proceeds to cover the debt. California HOAs could benefit from such a lifeline, but the legislators in power will not hear of it. From California Condo & HOA Law: Is There A Stranglehold on HOAs in California? The only time that the Association is NOT in second position behind the mortgage companies are in states where the homeowners associations have been granted "super lien rights", and these states are located on the East Coast--New York, for example, is a super lien state. California - The Court of Appeal’s recent decision in Thaler v. Household Finance Corp. is a good news / bad news type of situation. The good news is that the Court of Appeal has finally made a decision dealing with an important assessment lien priority issue. The bad news is that the Court of Appeal made a decision that is detrimental to community association assessment liens. (not a super lien) Can not find however a listing of states that have. Colorado definitely is a super lien state lots of topics about it. To check a state google (your state) "super lien"

11-03-2009, 08:55 AM	#12 (permalink)
proroad Senior Member Join Date: Dec 2008 Posts: 32 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: HOA selling my property for 6k debt? Thanks Dave, I will try to update as I get more info. Brian

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