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Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6421
Experience:  20 years of professional experience
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My bk discharge was July 2015. My home was approved however,

Customer Question

my bk discharge was July 2015. My home was approved for HAMP however, decided to surrender the home and rent. The HOA was discharged. Post bk we made 2 hoa payments since we were thinking about staying in the home and needed to keep a current balance.
We have found a rental on the same street and going to let our home become active again in foreclosure. Do I just walk away from HOA sending them a letter that we have surrendered our home in the bk and we will be moving out of the house by Nov 10? What will they do to us now? The previous hoa balance was discharged and now that i wont be in the home can they refile new charges against me while the home is in foreclosure which could take up to 4-6 months? They already have a lien pre-bk and the home is way under so when the home goes in auction or short sale they still wont get any money.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Maverick replied 1 year ago.

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Any additional HOA fees that accrue after you filed for bankruptcy, like other post-bankruptcy debts, will not be discharged. Now, new HOA fees often accrue while you wait for the bank to foreclose. If the HOA is not paid for the fees out of the proceeds of the sale of the property, then it may be able to sue you personally for any post-bankruptcy HOA fees during the time the property was titled to you. You can try to sell the property as a short sale, rather than wait for the mortgage lender to foreclose.

Sorry, I know this is not the answer that you wanted to hear; but I am assuming that you are paying for an honest and professional answer.

Customer: replied 1 year ago.

Hi, thank you for taking my question ... I am personally responsible for hoa dues they can sue even after moving out of the house and even though my hoa was in a chpt 7? Can I file a 13 or a 20 to to wipe that out after the foreclosure or short sale is finalized?

Expert:  Maverick replied 1 year ago.

If your house is underwater as you say, then yes, you should be able to file a chapter 13 to strip the HOA lien. At this time, BK courts are divided as to whether you can use lien stripping in a Chapter 20 bankruptcy. While some courts allow it right away, other courts argue that you need to be eligible for a Chapter 13 discharge before you can strip junior liens - meaning you will have to wait 4 years after your Chapter 7 filing date.

Customer: replied 1 year ago.

Okay I understand. Last question if I may...Since we have signed a lease rental on the same street we dont want any hard feelings with hoa. How do we approach hoa that we have surrendered the home, wont be paying any hoa dues since we are now renters and paying are hoa ($312.00) thru our new lease? Do we tell all of our intentions? Do we try to negotiate them to not sue us, if so, how do we negotiate? Im not exactly sure how much to tell them? The value of the home is now $108K but the loan is $223K it just makes sense for us to leave.

Here we had 17,000 in dues (Court/attorney fees included) discharged ... paid 2 concurrent months of dues post-bk and now it seems like we are sticking it to them again (in their minds). After all it was a job loss that put us in that position to begin with.

I'm thinking now to do a deed-in-lieu if possible as that may be a faster route to unload the title.

Thank you!


Expert:  Maverick replied 1 year ago.

I would say that you just stay current on you lease and if they try to collect dues on the one that is underwater, you may just want to consider letting them know in a letter that you do not have the funds to pay them. If they sue then you can hire a chapter 13 bk lawyer and that would be the best way to get them to negotiate and come to the bargaining table. The BK lawyer can send a letter for $200-300.00 threatening the BK filing to see if they will negotiate a minimal payout. So this is not the time to negotiate yet. Also, the foreclosue will be better. If you do a deed in lieu, you will have to pay tax on debt forgiveness income.