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Jeremy Keefer
  • Investor
  • Denver, CO
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Forcloser purchase - Metro District collection fees

Jeremy Keefer
  • Investor
  • Denver, CO
Posted Sep 18 2018, 08:59

I'm a fix and flipper in Colorado. It is common that when we purchase a property that is in a community that has a HOA that I am responsible for up to six months in the rears of HOA fees. In Colorado we are not responsible for paying anything older than six months due to the ccoia act (Colorado common interest ownership act). A month ago I bought another property at auction in a new build community. This house is only two years old. I assumed that I would be responsible for six months of HOA fees but to my surprise there is not a HOA in place. It is governed by a "metro district". Apparently ccioa rules do not apply here. The Metro District fees are $47 per month so I was under the assumption that I would owe a total of $282. I was informed that I now owe $1287 in passed dues plus another $1300 in collection attorney fees. I made contact with both the metro district and their collection agency within days of making the purchase. My question is am I on the hook for the attorney fees related to the collection efforts prior to my obtaining the property? Thanks in advance.