Bought condo at auction 7/2015 but THE HOA have owned it since january 2013 from a delinquent lien of 15k dues from previous owner
Am i responsible for the lien of 15k or the dues due to current date? Their collection agency sent me a letter saying i should pay dues to current date but i dont think thats right considering the HOA have been renting it out since 2013.
Can some of that rent money the HOA have been collecting minus the monthly assessment cover some of the liens from the 15k?
It looks like the collections company are trying to take people for a dummy since there is so much foreign investors here in south florida, its a lot of scam here. will consult attorney but would like to get a jump start and hear what my BP friend have to say.
Legal question for your attorney, not for the Internet. Good luck.
Yes, the whole reason an association forecloses, then rents out the unit is to recover past/current dues. You will likely still owe a large debt, as the interest alone (which they have an rignt to collect) on a $15k debt will be over $100/mo. The association will have the rights to deduct some type of management fee for their efforts, repair costs, etc. but Yes the collected rent will off set the past and ongoing fees to some extent. There will be some accounting and reconciling work involved.
What happens if the Condo Assoc. was not collecting rents even though the condo was in their name. The balance on the condo books would have been accumulating while only a years worth of maintenance would be collectable from the bank, but from a non-bank party, I believe they would have to pay all of the association fees that were in arrears. Do you agree ?
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.