HOW DO I AVOID PAYING UNREASONABLE HOA FEES?

HOW DO I AVOID PAYING UNREASONABLE HOA FEES?

Investor · USA · Member since 2019 · 117 posts · 57 votes

I had recently bought an occupied condo in foreclosure auction. The previous owner is still living there. I went through all the legal steps to get possession & recently won a judgement of immediate possession. However, I still have to wait 10 days before the Sheriff will force the previous owner out. My question is regarding the HOA fees, I received in my mail yesterday. $410/month!!!! for all this time that the previous owner was living there. I feel like I shouldn't be paying this because the HOA did not inform me on time otherwise I would've asked them to cut off the utilities. Also, now that I have gotten a judgement of possession, can I cut off the utilities to the unit? & How do I explain to the HOA that I shouldn't be billed for all this time or is there a law/policy I can use against the HOA for not informing me on time or anything that would help me make a case? I really think this is unreasonable & I shouldn't be paying all these bills. Also, I know tenants are protected by law from getting the utilities cut off but in this case, there is no lease or rental agreement. I am the new owner through foreclosure auction, thats all.

0Reply
121 views

Most Popular Reply

Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y

@Rehaan Khan the easiest way to avoid paying HOA fees is to buy properties without HOAs. You'll have success with this method 100 percent of the time

See this reply in the discussion

29 Replies

Jump to latestLatest
  • Investor · USA · Member since 2019 · 117 posts · 57 votes
    7y
    Thank you for your input but I already know that. Give me solutions instead of warnings.

    Originally posted by @Patti Robertson:

    Banks have no responsibility to disclose that it is even in a condo community. You need to pay upmor you will end up with a judgment and lien against your property. And you will pay their expensive legal bill on top of what you owe. 

  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    7y

    @Rehaan Khan - I’m confused. You already know you have a contractual obligation to pay by way if a deed restriction (IE recorded Condo Covenants) and you are looking for a “solution” to not pay your required fees? Basically to do that you would be forcing all the other owners in the Assoc to pick up your share. No way you can really think that’s fair. 

    Your solution is to pay what you owe. This is not rocket science. Just sayin. ;)

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    Pay it, you can't win against them.

    This is the best response to a HOA I've seen.Pay it,

  • Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
    7y

    I think this is a lesson learned for not only Rehaan but also others considering foreclosure auctions in lieu of traditional real estate owned (REO) sale processes with title company handling the closing. When you have a traditional sale, the title company will be researching the title chain, liens, and get a worksheet from the HOA on any outstanding balance as well as future HOA fee obligations. You also get title insurance which will protect you against any lien claims after you close. With an auction, you need to do all of that due diligence on your own. No one owes you anything and as a result, its easy to miss something as a new investor. I only dipped my toe into auctions after sticking with foreclosure sales and short sales done which helped me understand what gets checked and how HOAs work. Even then, I still only buy bank owned properties (post trustee sale) on auction.com so I can get title insurance and have 30 days to for my title company to research all title history and liens. There is too much risk for my comfort level with a trustee sale/foreclosure auction that I can't mitigate with a title company to help with that due diligence because of how those auctions work.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.