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Ask LawTalk Your Own Question
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 37855
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I have a 2 acre vacant lot in a private community in Texas.

Customer Question

I have a 2 acre vacant lot in a private community in Texas. I stopped making payments in March of 2012, and also stopped paying the HOA dues. The HOA foreclosed on the property in Dec of 2014 over 3,000 owed past due. Bank of America bought them out in January of 2015. On Dec 4th of this year I received a letter from BoAs debt collector saying I owe the principle and all past payments (61,000). Am I obligated to pay now that I am off title since January? Thank You
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  LawTalk replied 1 year ago.

Good morning,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Are you really off the title? Just because the lender exercised its right to take the property from the HOA after payment of some or all of the past dues owed doesn't mean that you are off the title. Until the lander has a foreclosure sale and a new buyer takes title to the property---chances are really strong that you are still on the deed to the property.

When you walk away from a property and it is foreclosed on by the HOA, the bank is obligated to pay some of the HOA dues arrears in order to get the property back. Those dues were your original obligation to pay and really are no different than they would have been had you lived there and continued to pay the dues and mortgage. The lender is simply trying to collect the debt that is owed.

The fact that you are off the title as of January only protects you from the HOA payments coming due after you were off the title. All HOA payments due prior to January, as well as the past debt on the mortgage is still owed.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Kindly, remember to rate my service to you. That is how I am credited for assisting you.

I wish you and yours the best this holiday season,