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LisaG5 (Colorado)
Posts: 2
Posted:
Hi guys...I am looking for some help from some HOA professionals.

Hello, looking for help! A paid-off property in my family was foreclosed on by an HOA, without due notice. We received an eviction notice from the ‘new owners’ yesterday when we stopped by to check on the empty place that is being shown. We have such little time and any help would be so appreciated.

My Grandmother lived in and bought her condo 15 years ago with cash. Grandma died in 2010.
Her son, my father, was the Power of Attorney in charge Grandma’s estate. Dad was diagnosed with cancer in 2008. When he received notification from the HOA that Grandma’s property would be in foreclosure due to owing one years worth of HOA fees, he was weeks away from passing and was not coherent, so no one knew this was happening. The HOA says his spouse signed for the paperwork, as she was with him along with his children, providing hospice care to him in his home. Dad died in February, 2011.
In about January, 2011, the condo was placed on the market by my father, and was being shown to many potential buyers.

After dad’s death, my sister became the Personal Representative of Grandmas estate in June, 2011. This was after the first notice was sent in February, but before the foreclosure auction of the property which happened a few weeks ago. My sister was not aware that any fees were due, and was not receiving any correspondence from the HOA, because it was being sent to my dead father (The HOA personally knew my father and was aware both he and my grandmother had died).
My sister continued with the same realtor and proceeded to show the property through all of this. The buyer as well as the condo community came into the apartment, saw it was being shown, also used Open Houses from our own realtor, listed it themselves, then finally auctioned it off, all without every telling the realtor that frequently would talk to them as she came into the building to show the unit.

On August 31st, we discovered a note on the unoccupied unit saying there was a 3-day notice to evict. While we are inside reading the letter, someone uses keys and enters the condo stating that he is the new owner, and that he has purchased this unit a few weeks ago at a foreclosure auction. He looks shocked and nervous to see anyone in the apartment, and asks “Are you showing this unit?” We are clearly stunned…I believe they were hoping no one would come by the unit for those 3 days, but it was a huge coincidence we stopped by.
This man begins to try and bargain with us…he wants to “make us a deal” or “work something out” or “bless this sale” or that he is willing to take $10,000 for his time. He was trying to wheel and deal after he had legally purchased a property and seemed incredibly suspicious and nervous.
Obviously, the HOA took the fees owed to them and placed the small amount that was left from the dirt-cheap sale into a trust account for the estate. We have no idea how to proceed and need help quickly. Someone told us that because someone signed for papers in February, that we have no case. But it seems to me as if there was absolutely no other attempted correspondence, and that the realtor was purposely not notified, and that my sister was not at any of the hearings, that something illegal took place in the crazy world of HOA foreclosure.
Please – any direction to Colorado laws on this, articles, or advice will be so so so appreciated. Thank you.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
The foreclosure usually takes place well before the auction. On the surface sounds like everything was done legally. If your grandmother signed the papers, and was coherent, there may be little you can do.

If you want to fight this, you need a lawyer, your pretty much out of time.
TimB4 (Tennessee)
Posts: 21,062
Posted:
It's possible that there is a time limit that has to expire prior to the sale being finalized.

If there is the clock has been ticking. Therefore, It's too late to be doing research on the internet about the issue.

GET A LAWYER NOW is the best advice I can offer.

TimB4 (Tennessee)
Posts: 21,062
Posted:
Per this this web site:

Is there a right of redemption in Colorado?

Colorado has a post-sale statutory right of redemption for foreclosures, which would allow a party whose property has been foreclosed to reclaim that property 75 days after the sale by making payment in full of the sum of the unpaid loan plus, taxes, costs and interest by submitting an intent to redeem at least 15 prior to the end of the redemption period. Within 8 days of such notice the property owner will receive a payoff number to redeem. This affords the property owner time to arrange for the payoff.
top

However, according to this web site:

There is no longer any redemption period for the previous owner after a foreclosure sale in Colorado.

Again, LOCATE AN ATTORNEY AND SEEK LEGAL ADVICE
SusanW1 (Michigan)
Posts: 5,202
Posted:
Yes - investigate into this redemption thing.

In Michigan, it's 6 months.

The owner has that much time to make things right before it become final.

PS I think it was probably more than just HOA fees not paid - bet this involves property taxes as well.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
You were all properly notified and there was notice. They run the foreclosure notice in a Public area such as your local newspaper. It is usually under the "legal section" in the Classifieds. Each paper is different on how often they put this information out. Legally, posting the notification of foreclosure in a public resource is consider sufficient notification. It happens similar to if someone wants a divorce but can't find the other spouse to fill out the paperwork. A notice is put out in the paper and if they don't respond, then the divorce proceedings begin due to "abandonment".

There usually is a right to redemption period after a foreclosure. Our state allows 1 year AFTER the sell to redeem. However, that owner has to pay for all debts owed and any improvements made. Each state is different as some only allow 6 months or less.

The foreclosure would have STOPPED if someone had simply paid the amount owed. In our HOA, we liened at 6 months of backdues. The foreclosure process ideally would have started at 1 year as well. However, each circumstance is different and we might have negotiated terms if contacted. Something I don't know why was neglected here.

I am sorry for the loss in your family. However, I can understand why the HOA did foreclose. It's frustrating as all the other members had to pick up the slack while there was no dues payments coming in from that unit. There's a fine line between compassion/empathy and I want my money...

Former HOA President
LisaG5 (Colorado)
Posts: 2
Posted:
I just want to thank everyone who posted here for promptly for the advice as well as reading my lengthy question! I will keep the forum updated on the outcome, seems like an interested story to learn from, good or bad!
LawrenceC1 (Georgia)
Posts: 480
Posted:
Lisa,

It is a shame that the HOA did not do more to try to find out what was going on with your unit. A foreclosure is such a drastic step that every effort should be made to avoid talking that action. Even if the HOA performed the minimum legal steps, there is a moral obligation to go further than that to help out a member homeowner.

This is what gives homeowners associations a bad reputation.

Good luck with setting this right.

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