Updated almost 8 years ago on . Most recent reply
HOA Fine Wiped out at foreclosure?
I know the winning bidder at a trustee foreclosure sale takes title subject to all senior liens, but is a HOA fine (not a lien) the responsibility of the new owner? The same question if lender took title via deed-in-lieu? My guess is the HOA doesn't have a leg to stand on. However, I'll bet it will come up when the property is finally sold in a more conventional sale.
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In your foreclosure scenario did the title company contact the HOA and get a statement ... so that the HOA dues, etc. could be adjusted as of the settlement date? They should have.
However, if the lender took title via deed-in-lieu and did not address this... then the lender assumed all of the HOA debt.
- Tom Gimer
