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JamshidS (Florida)
Posts: 2
Posted:
Hello,

My HOA's attorney sent me a letter "Intent to Lien" notice on July 15, 2012 for the amount $3,203 due. I purchased this foreclosed property at Orange County Clerk of Courts auction sales on April 10, 2012. Upon purchasing the property I learned from Court papers that there is an HOA unpaid balance of about $450 from previous owner, and I researched HOA office. Then I contacted and drove to HOA office several times but could not hold of so called " their accountant" who handled my property. Then I found out HOA president's phone number called HOA president, and left her message requesting to call me back regarding this Due Amount, but no one called me back an no one cared. I contacted the lawyer, which was handling HOA's case, but the lawyer said she was not handling this case anymore and she did not provide any further details. I didn't know who to resort to regarding this unpaid HOA fees for about 3 months.

All of a sudden, after more than 3 month, I received MY FIRST "WELCOME" letter sent by HOA's debt collector attorney that I owe HOA 3,203 USD of which over $2500 attorney fees.

Neither HOA responded my voicemail, nor HOA contacted or notified me before handing the case to the attorney.

Is HOA or HOA attorney required to notify the new homeowner regarding unpaid amount from past owner within specific time period?

Neither HOA, nor HOA's attorney contacted me before levying over $2500 attorney fees, they let the time pass and now they want me to pay attorney fees and interests. Can I sue my HOA ?

Did HOA contact me, or notified me about the monies due within 3 month? The answer is "NO"
Did HOA attorney contact me, or notified me? The answer is "NO".

I feel that my right to notification, right to knowledge about the HOA debt was VIOLATED. I also feel that as a new homeowner, HOA had to send me at least some letter notifying me that they are there.

Appreciate any help, seeking legal assistance or advice regarding this matter.

Regards,

Jamshid
GlenL (Ohio)
Posts: 5,491
Posted:
Jamshid welcome and sorry you are having this problem. I would recommend you have an attorney deal with this but if you are intent on trying to do this yourself, I would stop calling. You need to establish a paper trail, most likely the letter you received had a line in it to the effect of: If you do not respond within 14 days we will assume you agree with the debt and proceed accordingly. While you may be able to prove you called with phone records, you cannot prove what you said.

If the you purchased the home in a foreclosure and not a short sale, you are most likely NOT responsible for any unpaid past dues. You are only responsible for your fee going forward and it should be a prorated fee from when you took title. Each state's laws vary as to this and this is not legal advice which I urge you to get.

Studies show that 5 out of 4 people have problems with fractions
LarryB13 (Arizona)
Posts: 4,099
Posted:
Jamshid,

I see two separate issues here: assessments and legal fees.

You mention that it was a foreclosure auction. Was it a lender's foreclosure or the HOA's foreclosure? In most states a lender's foreclosure wipes out the HOA's liens, but Florida has so many strange laws regulating HOA's that it would not surprise me to find that you may be responsible for at least some unpaid assessments owed by the previous owner.

It sounds like the attorney for the HOA wants you to pay him $2,500 for sending you a letter. Most contracts have a provision for reasonable attorney fees. The key word is "reasonable." When a court awards reasonable fees it looks at a number of factors including the amount actually paid to the attorney. A party cannot collect more in attorney fees than he actually paid. I doubt your HOA paid this attorney a dime and that this is the attorney's get-rich-quick scheme.

My suggestion would be to consult an attorney as you may or may not be on the hook for past due assessments and it is highly unlikely that you have a legal obligation to pay the HOA's lawyer's unreasonable fees.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You are not responsible for the previous owner's debt to the HOA. It is important to know who did the foreclosing. Was it the HOA or bank as someone else asked? Suing your HOa is suing yourself and your neighbors. So do not recommend a lawsuit. An attempt to lien notice needs a response and should be able to dispute. The HOA has the burden of proof.

I'd recommend a lawyer here NOT to sue but to "argue/respond" to the lien. Need to prove lien is not valid. Although it could be if it is your debt. Legal fees are attached to liens when they are to be paid off. The fees do seem high as filing should be around $500. I'd worry about the HOA' dependency on lawyers. Sounds like a HOA with management issues.

Former HOA President
CarolF (Florida)
Posts: 435
Posted:
Have you paid your own HOA fees that have been due from the time you bought the house in April?
JamesB15 (Florida)
Posts: 87
Posted:
The first thing I would do would be to send the dues in for the time you actually owe. If your property was bought owned by bank or private lender they could owe 1% or up to one year's dues if the lien was in place at the time of foreclosure. If it was a tax sale it would be clean. If you were sent the collection letter by certified mail you would then have 45 days to respond before a lien could be placed. The letter you received had to be certified or the clock doesn't start. It sounds like the treasurer is throwing a "Hail Mary" and may have not even given this to the attorney until July. Check out Fl720 and Fl 197. Welcome to your new association.
CarolF (Florida)
Posts: 435
Posted:
I think the poster has to clarify for us is he has paid the assessments that HE owes from the time he actually bought the house, which was April. If he has not paid anything, then that intent to lien could have nothing to do with the previous owner.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I entirely agree with you, CarolF!
JamshidS (Florida)
Posts: 2
Posted:
No, it is totally different association, a community association which foreclosed the home. Other than community association, there a an HOA as well as you know. Community Association is ALL SET.

So there was an unpaid balance for HOA as well other than community association. The problem is that, the HOA never informed me about the due payment for over 90 days since I bought it, and now Attorney wants to rip me off legal fees. You understand?

Have they ever asked me to pay previous unpaid HOA fees? The answer is "NO"
Has HOA's attorney notified me about that? "NO"

As a welcome gift, I received my first letter "INTENT TO LIEN" which says that I owe them $3500.
This is crazy.

And I didn't pay HOA within 3 month, since I BOUGHT it coz no one asked me, and i didn't know how and who to pay.
MikeS1
Posts: 521
Posted:
In foreclosure cases, we find that the banks and Fannie take over the property, the previous owner files for bankfrupty, but what kills me, is the fact that the banks and even Fannie will not record the deed of trust, so the HOA is left hanging. When the property is foreclosed on by the bank, the OWE the HOA fees from that or the time that previous owner filed bankruptcy, but by them not filing, they can postpone paying the HOA fees and postpone paying for property maintenance. We see this happen all the time. So pay the HOA fees from the date that you purchased the property and send them a certified letter saying that you're not liable for the back HOA fees.
MikeS1
Posts: 521
Posted:
In foreclosure cases, we find that the banks and Fannie take over the property, the previous owner files for bankfrupty, but what kills me, is the fact that the banks and even Fannie will not record the deed of trust, so the HOA is left hanging. When the property is foreclosed on by the bank, the OWE the HOA fees from that or the time that previous owner filed bankruptcy, but by them not filing, they can postpone paying the HOA fees and postpone paying for property maintenance. We see this happen all the time. So pay the HOA fees from the date that you purchased the property and send them a certified letter saying that you're not liable for the back HOA fees.
TrudyB (Nevada)
Posts: 2
Posted:
Perhaps there is something in here that may help

http://www.hud.gov/local/fl/homeownership/hnassociations.cfm

I believe each state may have different regulations

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