Non Payment by Homeowner

Started by Brian. • 2 replies • 1285 views

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Brian. (Oregon)
Posts: 4

Posted:

I am sure this has been addressed a hundred times, but couldn’t find recently.

Situation: Homeowner behind by 2 years to the tune of $4000 on HOA. All the liens are in place against property from HOA. In Oregon we may only get last 6 months dues on foreclosure. Foreclosure is in process by bank, but who knows how long. Ownership has been changed to LLC, from individual name, so personally suing or collecting funds even if you have a judgment may be difficult. Can’t shut off the water and it is to more than one unit. Only can stop garbage pickup.

Board is very experienced at this game and we only have one person out of 77 not paying. Only option we have not looked at is filing small claims, but that may be difficult against LLC. Any other suggestion of actual executed strategies? But then again each state is different. Thanks

LawrenceC1 (Georgia)
Posts: 480

Posted:

Brian,

Once the foreclosure is in process there's not much the HOA can do but wait. You will know at the closing if you get any money from the transaction, but it's likely hat the HOA gets nothing.

Don't completely dismiss going after the former owner personally. Unless there was a bankruptcy the debt can be collected in some jurisdictions by attaching bank accounts or garnishing wages, after following proper legal procedures.

The fact that the ownership changed from a person to an LLC is curious. Usually any transfer is conditional upon satisfying all outstanding liens. It could be that this transfer was improper and could allow the HOA some recourse.

It sounds like it may be time to talk to a collection attorney to see what you should do.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Brian,

Even if the transfer was legal, the former owner would still be responsible for the assessments until the transfer happened.

Tim

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