Can an assoc try to collect HOA dues twice after foreclosure?

11 Replies

Hello! We had a property that was foreclosed on 9 years ago in Illinois and there were unpaid HOA dues. The condo has been sold twice since then and we are certain that the HOA dues have been paid during the first sale. Now, out of nowwhere an attorney for the Association contacted my husband saying that he needs to pay the HOA dues even if the debt has already been paid. Is this even legal for them to do (we've been told it sounds sketchy and that they are trying to "double dip") and what is the best way to address this? Thank you.

No they can’t collect twice. However, a buyer may have negotiated a discounted/partial pay off to remove the lien from the property but you would still be liable for any difference.

Originally posted by @Karolina Aguilar :

Hello! We had a property that was foreclosed on 9 years ago in Illinois and there were unpaid HOA dues. The condo has been sold twice since then and we are certain that the HOA dues have been paid during the first sale. Now, out of nowwhere an attorney for the Association contacted my husband saying that he needs to pay the HOA dues even if the debt has already been paid. Is this even legal for them to do (we've been told it sounds sketchy and that they are trying to "double dip") and what is the best way to address this? Thank you.

 wow HOAs are slimy..

The former Treasurer of our HOA embezzled over $6K. Once he was caught he made restitution, sold his home and moved away to avoid prosecution. His wife was mortified to say the least.

1. Send the HOA a F.O.I.A. request for all of their financials and payment history for the entire association going back 10 years. Ask specifically about your property as well. You may still end up paying this but make them earn it. Check for fraud in payments and distributions to non existent contractors. Check to see if any payments earmarked for your property were "accidentally" applied to an HOA board members property.

2. Review your purchase HUD 1 and see if any funds were paid there.

3. Contact the seller and ask for a redacted copy of their original purchase HUD 1 and look for the same.

4. Check your title insurance and see if their is any mention there.

5 Check the county for liens against the property that have been satisfied.

6. If it is worth fighting get a good attorney.

Your By-Laws may allow you to call for an independent audit at the HOA's expense. When the dust has settled and you have grounds for concern ask for one and see if the records supplied to the CPA match what you got in the FOIA request.

Wait a minute, I thought You were foreclosed on 9 years ago.....or, did you just buy this?
If so, I assume you got an HOA estoppel/Certificate and title insurance, if so check the Exceptions Section B in your Title Commitment.
OR
Was this some private sale between you and the seller with no agents or title insurance.

No HOA attorney is going to try to collect on a debt that had already been paid in Full.....we’ll have to turn to Paul Harvey on this one......

Yes, the property was foreclosed on 9 years ago, and since then has been purchased twice (we did some digging online to see what happened since the bank foreclosed on it. We have not had ownership in this for over 9 years now. I feel like this law firm is shady and trying to "double dip".

I’d try to talk directly to the association, but they’ll probably try to refer you to their attorney, but you need some accounting of what has happened.

Also, I’d try to reach the Current homeowner for their knowledge on it.

Freedom of information requests don’t apply to HOA’s.

Best of luck!

State laws will determine if they even have a right to collect at this point.

Originally posted by @Karolina Aguilar :

Hello! We had a property that was foreclosed on 9 years ago in Illinois and there were unpaid HOA dues. The condo has been sold twice since then and we are certain that the HOA dues have been paid during the first sale. Now, out of nowwhere an attorney for the Association contacted my husband saying that he needs to pay the HOA dues even if the debt has already been paid. Is this even legal for them to do (we've been told it sounds sketchy and that they are trying to "double dip") and what is the best way to address this? Thank you.

I preface my comment by stating that foreclosure laws are state specific. I do have some questions. Who foreclosed on the unit? Was is the HOA or the mortgagee? What did your condo docs say regarding liens from the HOA? It is possible that you are personally liable for outstanding HOA dues and fees even if you no longer own the unit. If what you owe is worthwhile to the HOA they could come after you for the outstanding debt. But in your scenario it sounds like the debt has been paid but they are coming after you anyway? That doesn't make sense. You may want to call them back to get the situation explained to you again, or have them send you a letter with an explanation.

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