This “housing crisis” continues to create a number of issues for homeowners even after they have made the hard decision to let the bank take their home back. But maybe not in the way you might think!
This particular issue has to do with the Home Owners Association. A recap of the story goes like this.
A Chandler, AZ resident determined he was no longer able to make his payments, declared bankruptcy and left his home. Well after the bankruptcy had been discharged he found he was being sued by the HOA for late fees and unpaid assessments.
What happened? Well…just because the homeowner decided to give his house back to the bank does NOT mean the bank actually foreclosed. In this case the it is Bank of America. In the true spirit of upholding their already tarnished reputation, B of A was in no hurry to foreclose. So during the time the homeowner had left the property and after his bankruptcy was discharged, the HOA continued to hold the “owner of record” responsible.
This is something homeowners need to be aware of if they are planning on letting their home go back to the bank. Do you have outstanding HOA fees due? If so it seems more and more likely that HOA’s WILL pursue every dime they can recover. They don’t care that you left your home 8 months ago and the bank has not formally foreclosed on the home. They will consider it YOUR DEBT and go after you legally to recover past due fees as well as legal fees.
Maybe it would just be easier to make the payment, if possible, during the foreclosure process.