Special Assessments after Foreclosure

[Mike Rash]

Unit was purchased at Sheriff Sale in NJ (Foreclosure on 1st Mortgage).

Unit is located within Community Association.  Five Years ago, Association undertook a project

to Replace Roof and Sidings.   At that time, homeowners were given an option to pay

the assessment in full (about $10k) or spread it out into payments over 10 years.

The previous owner choose to spread this assessment into 120 payments.

Does the foreclosure wipe out this assessment, since this is 'liability' of the

previous owner? or am I responsible for these assessment payments starting from

date of the auction?

To me it seems like these 'assessment payments' should be treated the same as loan payments,

and be wiped out as a result of foreclosure.

What are your thoughts?

Regards,

Mike

[Don Wede]

The HOA dues and any special assessments are liens on the property. They like any mortgage or other lien must be paid for (cleared off) at the foreclosure sale. I guess you can say the new buyer is paying for them since he has to fork up the money to obtain clear title.