HOA Liens After Bank Foreclosure

[Reetesh Sood]

Hello All, Does HOA Liens survive Bank Foreclosure? If so what would be the best strategy to get the HOA to release the lien? Other than negotiating a short sale.

[Chad U.]

Quote from @Reetesh Sood:

Hello All, Does HOA Liens survive Bank Foreclosure? If so what would be the best strategy to get the HOA to release the lien? Other than negotiating a short sale.

Depends on the state.  

[Wayne Brooks]

In most states, yes.  Short sales don’t apply where hoa liens are the only debt.

[Mohammed Rahman]

Hey @Reetesh Sood - I recommend reaching out to a real estate attorney that practices in the area the property is located. I've learnt that although posting in the forums gets a lot of responses, there's just too much nuance even county to county in the same state for the forum responses to give you the right answer. 

[Reetesh Sood]

Right, Thanks

[Chris Seveney]

@Reetesh Sood

Negotiating a short sale from the primary borrower would not remove the HOA lien.

If you foreclose as mentioned it depends on the state but the HOA lien could be wiped out or reduced significantly. This is assuming the HOA lien is junior to a mortgage which would be foreclosing

Best to get an attorney in the state. If you need attorneys referrals let me know

[Bill Brandt]

In NV the Hoa lien is above the bank. It’s like an irs lien in that it’s placed above liens that were already in place.  A short sale or foreclosure doesn’t touch the Hoa lien. And the Hoa can, or at least could in the past, start their own foreclosure.