Address for billing Wells Fargo for annual dues?

Your problem here is deeper than that. Your HOA should have filed a lien on this property BEFORE it went into bank foreclosure. That still does not mean your HOA would have gotten paid. The bank always gets paid first and foremost. So there was probably no money left over to pay off the HOA's lien if one had existed.

The next issue is trying to get the bank to pay. It's not going to pay you a dime of money until it actually sells the property. That is usually how banks do things. A foreclosure for them is a huge loss. So they aren't going to keep paying more money on that loss until they get a buyer. Which in most states the new buyer is NOT responsible for the prior owner's debts.

I would suggest putting in a lien policy in your HOA. Our policy was 6 months behind on dues we would lien. This would work for monthly and on yearly collection dates. If the 6 months is up, then go file a lien on the property after proper notifications. If the bank has not paid up in that time period then go file a lien on the property.

A lien or a lawsuit never gets you the money, it's just a promise that some day it might.

Does Wells Fargo have banks in Florida?

I used to be licensed as a process server and among the rules for serving legal notices is that they may be served on a corporation by serving the statutory agent or an officer of the corporation. I'm not sure about Wells Fargo but I have seen other banks where everyone above the rank of teller is a vice president of something. A vice president is an officer of the corporation, so if you serve one of them with notice you have served Wells Fargo.

Get the name and address of the branch manager, who ought to be a vice president, and mail a demand to him by certified mail.

Wells Fargo has mortgage offices all over FL so do a Google search.

That said you are probably peeing aganst the tide expecting them to pay but what the heck, a good pee against the tide often feels great.....LOL

Johnc46....I had a ’69 Austin Healy with Lucas ignition that would fail over 60% humidity.....drove me nuts.....I bet the lights flickered on and off in that building when you did your thing!

LOL. You're not going to get a dime out of Wells Fargo. Don't waste too much time or money on this.

Bad Idea Brian. The HOA never ever wants possession of the property. It's a bad idea. Do you think your HOA can afford a house payment, repairs, maintenance, due payments, insurance, and other expenses related to owning a property? Plus the rent collected could be subjected to taxes. A HOA should avoid owning a home at all costs if at all possible.

I disagree. I've done it. Foreclosing is always a good option if you have a decent rental market and want to make your dues back. Owning property is cheap.

Expenses:
------------------------
Mortgage $0
Repairs $0-$500 year
Insurance $150 year
HOA dues $?
Electricity $0 paid by tenant
Gas $0 paid by tenant
Taxes: $?

Income:
------------------------
Rental income: $1700 month

Let's say it costs you $1700 in lawyer fees to foreclose. That money will come back in the first month rent. Most of the cost associated with owning is the mortgage payment. The HOA will not pay the mortgage payment and let the bank foreclose on it. This may take 2 to 4 years. Yes, you will have to pay taxes on the rent, big deal. So lets say you get 48 payments of $1700, that is $81,600 gross back into the HOA accounts.

I have foreclosed on a property for unpaid dues. The reality is that the person owed $2500 in back dues. It cost us about $800 in legal fees to foreclose. The first bid went for $2501 to us and then opened to any bidders. Which meant that not only were we already out the $2500 but the additional $800. If we had put a bid in that would have made us pay back our own debt owed to us. That $5,801 invested in this mess just to get our original $2500 back.

So IF we did buy the property we would have still been responsible for what ever the owner had left to pay on the house. Which was unknown at the time if it was more than the house was worth or not. The house had about 10 - 20 K worth of damages from a broken pipe alone. The owner may have still owed 75K on a house worth only 100K at best in good condition. Which meant our HOA would have had to get a mortgage on a home for 75K and then spend the additional 20K to fix the house up to be rental/liveable. So we are up in debt now of $90K plus. Plus we would have to pay the Association dues to ourselves. So a house payment of $550 plus the $50 a month dues payment would be $600 out of our budget a month on this home.

A HOA is a non-profit corporation. This rental property would have been subjected to taxes. Plus we would have to pay the property taxes and insurance for the property. Again investing another 1K a year of our budget to ownning this home. Considering that we barely could meet our 5K a month operation costs adding on another $600 - $700 would not have been feasible.

Plus who would control the rental contract for the property? Another board responsibility? What if the renter violated the rules? There are tenant rights involved and how would the HOA go about evicting a tenant? It cost money to evict and time. A renter could stop paying their rent up to a year before being legally evicted in some states.

So in the end, it would NOT be worth a HOA owning the property as even charging rent to cover the costs would be risky. Considering rent usually went for only $500 - $600 a month in our HOA. Who would want to be be charged $700 for us to break even each month? Plus continue to have ownership of this house for who knows how long. What if we can't afford the house and have to be foreclosed on?

I know of some HOA's who have taken it upon themselves to rent out foreclosed houses in their HOA. Which is a dangerous and illegal thing to do. They think they are doing a good thing and making money on a losing situation. However, they gets them deeper in a hole in the long run because when the bank finds out be it in some years. The HOA can be sued for ALL the rent they collect illegally for all those years. Not a good option if your HOA does not have legal title to a home.

No that's not exactly how it works either. The bank in a HOA foreclosure ALWAYS gets the money first and foremost. The HOA ONLY gets what is left over if any. Essentially the HOA does the work of the bank. So yes the HOA does foreclose on the lien but the bank then still has a mortgage on that property (if one still exists). Which had not been paid during the time the HOA was doing the foreclosure. So then the bank itself is also foreclosing. That means the HOA would then have to pick up the bank's note to own the property or the bank will take the property away. Meaning the HOA paid for ALL the foreclosure Eviction costs ($2500 + $800) without benefit of owning the property. Which is what happened to us in the end. The buyer we got for the house did not take the house and it was then turned over to HUD after a year. It's just a stop the bleeding method.

There is also the matter of right to buy back the property after the foreclosure for a year in Alabama. The owner could come back within a year to buy back the property for the foreclosure amount we paid and pay back the bank. So we could not really do any of the improvements or anything until that right of redemption period was over. The owner would have had to pay for our repair costs during that time period but we would have been out all that money/work until then if that happened. No matter what we would have had to keep the property for a year. Which most of that time would have been tied up in legal and repairs before we could even start collecting rent.

My advice is solid and proven. It's just not a good idea for a HOA to own any homes and rent them out. Unless they can afford the taxes, maintenance, dues payments, and all cost associated with paying for home ownership. I just don't know many HOA's that can afford the extra cost of home ownership out there without getting into financial risks.

Yes, I know your correct. The bank will start the foreclosure process on the HOA. Who cares? This process takes years. The HOA rents the place in the meantime and makes all it can before the bank foreclosure happens. n



Incorrect. The court already awarded the HOA ownership. The HOA owns it. The mortgage/lien is a separate issue which does not involve the HOA. The HOA doesn't owe the bank anything. And yes, the bank will foreclose.

Your tenant issue is out of the ordinary. This rarely happens in most evictions.

Source? I've never heard of this or seen it happen in real life.

Good idea James I am with you on your decision. If your HOA does not have enough money to pursue just to lose, it's best to do the best that you can. Placing a lien and having a lien policy in place is your best bet. After that it's just a time issue. It doesn't cost money usually to just let a lien ride if you don't have to renew it.

Let me put this other foreclosure issue into perspective. Let's say you buy a car. You agree to make payments to the car lot. The money came from the bank. Now you decide to stop payments to the car lot. The car lot can come after you by first issuing a lien against the car title. After that they then pursue repossessing the car. Now the car lot takes possession of the car for the money owed them. However, does the car lot own the car? No. The bank still has money owed to them.

Possession is 9/10's of the law. The car lot may possess the car but the bank still holds the note. The car lot would have to pay off the rest of the loan from the bank in order to be able to sell that car. If they don't, then the bank could come after them for whatever they sold the car for.

That is similar to what happens in a house foreclosure. The HOA may have a lien and foreclose on the lien, but the bank owns the note. So the HOA just closed off on the amount owed to them but not the overall debt of the property. That is whatever is still open that the bank has.

Common logic then: If your house is being foreclosed on can you rent it out? If you could, do you think your house would be in foreclosure then? The bank finds out your renting out your home they are foreclosing on, they will ask for all the rent you collected as you are not in possession of that home. The bank is.