Recovering Dues on Foreclosure

In the past when we have had properties sell, the mortgage company has *always* contacted our HOA asking if there were any outstanding liens against the property for sale. Two years ago, we had a foreclosure property sell and they followed the process. We stated the amount of the outstanding dues and they sent a check prior to closing.

Two months ago we had another foreclosure property sell. Being Secretary/Treasurer of the HOA I attempted to contact the listing agent. After three messages left over two weeks I never did get a return call. I managed to dig up the name of the new buyer as he has not actually taken residence yet. (doing renovations prior to occupancy) He stated that his attorney told him that he is not responsible for the past dues. Those would be the responsibility of HUD.

Not being well versed in Legalese, I have reviewed the Illinois statues and it appears that HUD is responsible, though the new owner may be responsible for up to the last six months. So my questions are this:

1. Is it part of the legal selling process that the mortgage companies/title companies/etc are REQUIRED to contact the HOA for outstanding liens?

2. Who is really responsible and for what part of the past dues?

3. We did not file liens with the local courts as we were always contacted and paid in the past. Would this be the only way that the liens are enforceable?

Thank you in advance for the guidance of forum members.

Every State is different.
You need to check your applicable State laws.


Each owner is responsible from the date of purchase (closing) till the date of selling.

Except for FL properties, the new owner is not responsible for the past owners assessment debt. They are only responsible from the date of closing forward.


Yes.

If you know where the previous owner moved to, you could start a legal process to collect. However, depending on the amount owed, this might not be financially worth it.