Investor · Denver, CO · Member since 2016 · 5 posts · 1 vote
We bought a condo at the Public Trustee auction. The condo was listed for sale a couple months ago, but it never sold. The listing agent told me it had a $7000.00 HOA lein. I know every state is different, does anyone know in Colorado if the HOA leins survive these sales, or are they wiped out by the foreclosure sale?
Real Estate Broker · Larkspur, CO · Member since 2017 · 115 posts · 77 votes
8y
Colorado is a super lien state where an HOA lien can have priority over a 1st and/or 2nd mortgage, and any other subordinate liens or judgements on the property. The lien remains with the property through the sale, so yes, you will still owe the HOA lein. You may be able to negotiate a lesser amount through the HOA, but they still have the ability to foreclose on the property to recoup was is owed on the HOA if it is not paid off. Good luck!
Real Estate Broker · Larkspur, CO · Member since 2017 · 115 posts · 77 votes
8y
Colorado is a super lien state where an HOA lien can have priority over a 1st and/or 2nd mortgage, and any other subordinate liens or judgements on the property. The lien remains with the property through the sale, so yes, you will still owe the HOA lein. You may be able to negotiate a lesser amount through the HOA, but they still have the ability to foreclose on the property to recoup was is owed on the HOA if it is not paid off. Good luck!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
8y
HOA liens here get split into parts. Up to six months of HOA dues will be senior to the first mortgage. Any remaining dues follow the "first in time, first in line" rule and will fall in order based on when the hoa recorded their lien.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
8y
@Jeremy Keefer you might want to reach out to @Dan Mackin or @Linda Weygant as they have done some significant research on this topic. Probably a best source would be an attorney that specializes in HOA community representation as they should know the law inside and out.
Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
8y
Here is my understanding of the HOA liens here in CO. If it's a typical hoa lien it does not survive the sale. The 6 month super lien is paid off before the first lien holder. Then first lien, then the remaining proceeds go down the line to the subordinate liens which will include the remainder of said HOA lien. Even if the remaining balance of the lien is not paid it is still wiped out and removed from the property. The HOA could have filed for redemption from you if they had wanted to, but if they did not do that then their rights to the old lien/judgement are gone. Send me a message if you need an attorney recommendation for this.
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
8y
Agree with @Dan Mackin - you'll almost certainly owe the superlien amount which is equal to 6 months worth of dues.
You may or may not owe all or a portion of the rest of the amount based on date of filing, etc.
Be prepared to find the HOA board completely unwilling to negotiate. These types of debts become very personal in nature to the people on the board who are homeowners in the community, have probably spent a significant amount of money to try to get this collected, only to be in a position now of probably getting only 6 months of dues. They will have the mentality that their neighbor stole from them for a very long time and they had to personally carry the burden of their neighbors non-payment. Expect a lot of resentment. Expect some of that resentment to be transferred to you until you prove that you are a good neighbor. It's the nature of HOAs, unfortunately.
Investor · Denver, CO · Member since 2016 · 5 posts · 1 vote
8y
Thank you all for your input. Your comments were very helpful and pointed me in the right direction when doing my research. We finally resolved the issue. Dur to the cciowa act in the State of Colorado all leins wer wiped out at forclosure except for the six month super lien. The HOA told us that is something they are entitled to no matter what and that we as the buyers were responsible for the 6 months of dues. I appreciate everyone's comments!
Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
8y
It was my understanding that they should have gotten paid for that Superlien as part of the proceeds from the sale at auction. I'll check with my attorney next time I chat with them to see their opinion.
It was my understanding that they should have gotten paid for that Superlien as part of the proceeds from the sale at auction. I'll check with my attorney next time I chat with them to see their opinion.
My understanding as well but...assumes there were proceeds. If it didn't go over total debt, there wouldn't be any proceeds so while the sale would go through, the lien would survive the sale.