💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

MargieF (Texas)
Posts: 3
Posted:
We have a property owner that moved away about six months ago. Since that time the weeds overtook their yard. We mailed them several letters asking them to clean up their property. They told us they would but never did. We finally advised them we would have it cleaned and charge their account with the cost. We did that and notified them we had. We charged the cost to them and filed a lien against their property. They are two years in arrears on their maintenance fees too. Bank has now foreclosed on the property. I know the maintenance fees are wiped out but does anyone know if we (POA) have to legally file a Release of Lien on the other matter? I have searched and googled but am not able to find an answer. This is a Texas POA.
Thanks for any help. Margie
TimB4 (Tennessee)
Posts: 21,062
Posted:
Margie,

State laws vary. I would suggest that you consult with your Associations attorney to see what legal options are available.

Tim
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Each state does vary like Tim said. However, I am unclear as to if there were 2 separate liens filed or just the one? If the HOA/POA had put the lien on the property BEFORE the bank foreclosure, then there may be some money there to follow up on. A phone call to the bank or whoever processed the lien should be contacted.

The maintenance fees should have never been wiped out if that was the basis of the first lien. Not clear on that. Was it that lien was never filed and now your HOA wiped it out assuming to take no action?

Don't be suprised if you don't get a check because bank's get paid first no matter what. If there isn't enough money from the foreclosure sale, then none of the debtors will get paid. The only good news is that the HOA may be one of the first debtors paid if there is a line of them. It's basically debtors left with the bank's scraps.

Next time make sure to get the liens in before bank foreclosures start...

Former HOA President
FredS7 (Arizona)
Posts: 927
Posted:
I wouldn't think you would need to file a release until you get paid. Maybe someone ELSE can get around it but I don't see why you should help them.
MargieF (Texas)
Posts: 3
Posted:
Our policy is to file a lien for annual fees once they are two years in arrears. In this particular case, I would have been filing a lien next month. The lien I am interested in finding out about is one that we filed when the owners did not reimburse the POA for having to hire someone to clean up their overgrown yard. We filed that lien about 6 weeks before the foreclosure. The title company for the bank foreclosing is asking us for a release of lien. We asked them to provide us with a release with language pertaining to a foreclosure because the one we use says we're releasing the lien because the debt has been paid....we're not willing to give them a release stating that.

I do appreciate your feedback....

MargieF (Texas)
Posts: 3
Posted:
Our policy is to file a lien for annual fees once they are two years in arrears. In this particular case, I would have been filing a lien next month. The lien I am interested in finding out about is one that we filed when the owners did not reimburse the POA for having to hire someone to clean up their overgrown yard. We filed that lien about 6 weeks before the foreclosure. The title company for the bank foreclosing is asking us for a release of lien. We asked them to provide us with a release with language pertaining to a foreclosure because the one we use says we're releasing the lien because the debt has been paid....we're not willing to give them a release stating that.

I do appreciate your feedback....

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here