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Deed In Lieu of Foreclosure if you haven't paid your HOA dues

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by Yanqui, Dec 15, 2008.

  1. Yanqui

    Yanqui LoanSafe Member

    I'll start with the known truth as I have learned. I will never own another property where an HOA is concerned.

    Beyond that, I have stared to see the question arise about DIL and deliquent HOA dues. That's why I started this here.

    I have a home that I have been remodified on, but it was too little, too late, and now I just want out. I have not paid the HOA in about a year and from my understanding in the forum a DIL may be out of the question. So, since my credit score is already degradated, I'll keep people informed on what happens next.
  2. ProfessorShays

    ProfessorShays LoanSafe Member

    I'm not sure I agree with your statement. HOA dues, but for the typical covenants, conditions, and restrictions that effectively subordinate them to a first loan that is foreclosed upon, actually have priority over the loan. So, given circumstances where the loan isn't foreclosed, but a deed-in-lieu is accepted, the natural assumption is that they would have priority over the loan (not like a second loan that is recorded after the first loan).

    My sense is this may be a difficult distinction to understand but it does make sense (at least to me).

  3. Yanqui

    Yanqui LoanSafe Member

    Thank you Daniel, my only experience with HOA is with my first property I bought six years ago in a condominium complex and it was fine. It just started to get bad when I bought my primary in Arizona and I started getting alerts to my violations on having a trash container out for a day, having warnings of cars parked on the street where it states in the CCR's that you can park on the street for a 48 hour period, and these were not cars of anyone I new parked in front of my home.

    Another one for my landscaping where the river run was to be four feet from the sidewalk, and how we need to keep the asthetics of our neighborhood pleasant in the midst of my home and seven others being the only one in the community that landscaped and the rest were empty lots with tumble weeds and trash. and the fact that so many foreclosures have recorded in my community the have raised the association dues twice in one year.

    But that's my primary home that I want to keep. The other home, with it's two hundred thousand dollar loss is another story and I can not continue with any of the payments unless it gets remodified again to reflect the current value and the rent covers the mortgage and HOA. Either way my credit score was hit hard and I'm completely out of money in less then 6 months. So it just may be better to let it go and file for BK.

    I am truly greatful to have found this forum and people such as yourself that have been a goldmine of information.

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