Can a HOA lien be attched after bank foreclosure?

Started by ZkS • 7 replies • 2493 views

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ZkS (North Carolina)
Posts: 3

Posted:

We have a small 48 home association outside of Charlotte and our dues are roughly $140.00/yr.

We've had an owner who hadn't paid in over 9 years and the bank just locked his door. The Lien of Real Property was attached shortly
thereafter.

Will we be able to collect when the bank sells this property or are we out of luck?

Thanks,

Boris

PeterB1 (Florida)
Posts: 257

Posted:

In Florida, our attorney told us we must lien when we are served as part of the foreclosure process. When the house is finally sold, we will get our money. No lien = no money.

peter

ZkS (North Carolina)
Posts: 3

Posted:

Thanks Peter.

Are you saying in Florida the banks/lending companies seek out the HOA as part of foreclosure process?

We're small so we don't have an attorney on retainer and it's probably similar here in NC.

I know the banks won't pay the lien, but I wanted to make sure we got it attached before they sold it at a secret auction
to one of their cronie real estate companies.

PeterB1 (Florida)
Posts: 257

Posted:

YES. The bank (attorney) serves us as a defendant and we reply through our attorney. Filing a lien preserves our right to collect monies which are due us.

End of knowledge!!!

RogerB (Colorado)
Posts: 5,067

Posted:

ZkS, it depends on the state statutes as to whether or not and how much is collectable on a filed lien by an HOA. In Colorado there is a "super lien" statute which allows the association to collect 6 months of assessments.

RandyG (Washington)
Posts: 9

Posted:

Boris, I think the ultimate answer is hinged on the following ?

What was the HOA doing for nine years-did you place a lien ?

What is in your covenants.

My guess is your statute of limitations will prohibit any collection at this late date.

Perhaps you need a past due collection policy.

RG

ZkS (North Carolina)
Posts: 3

Posted:

Quote:

Posted By RandyG on 09/29/2010 2:24 PM
Boris, I think the ultimate answer is hinged on the following ?

What was the HOA doing for nine years-did you place a lien ?

What is in your covenants.

My guess is your statute of limitations will prohibit any collection at this late date.

Perhaps you need a past due collection policy.

RG

Yes a lien was placed around 5 years ago for unpaid dues.

Here's what our covenants says-

9.7 Lien for Assessment. The Association shall have a lien against each Lot to secure payment of delinquent assessments, as well as interest, late charges (subject to the limitations of North Carolina law), and costs of collection (including attorney’s fees). Such lien shall be superior to all other liens, except (a) the liens of all taxes, bonds, assessments, and other levies which by law would be superior, and (b) the lien or charge of any first Mortgage of record (meaning any recorded Mortgage with first priority over other Mortgages) made in good faith and for value. Such lien, when delinquent, may be enforced by suit, judgment, and foreclosure in the same manner as mechanics’ and material men’s liens under North Carolina law

Since dues are only $140/yr it was cost prohibitive to hire an attorney and sue for 5 years of dues. We were told by council to just attach a lien to the property
and upon re-fi or sale of home we could collect.

Thnaks

LynetteB (Texas)
Posts: 141

Posted:

Sometimes a perceived foreclosure has taken place without the follow through from the bank. Your county appraiser may have up to date records that are easy to check online, otherwise a trip to the county clerk will help you find who is the current owner or if the change has not occured.
We had a lien on a property that was foreclosed. We took the owner to small claims court and won. The court issued an abstract lien which we filed with the county and liened the previous owners other property within the county it was filed. The guy paid his back dues.
As it turned out, the bank gave him the money to pay his back dues as told the bank we would not release the lien without payment. They tried to say that the lien was wiped out because of the foreclosure. We told them that if it was wiped out, we shouldn't have to release it. I guess it was cheaper for them to pay then to go to court to have the lien removed.
Good luck.

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