Hud as owner via foreclosure

Started by GlenS1 • 4 replies • 1251 views

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GlenS1 (Illinois)
Posts: 5

Posted:

Didn't see this anywhere, forgive me if it's been covered before.

We are a condo assn. that has had our first foreclosure in the complex. The owner is now HUD.

What can we expect to happen? Will HUD list it for sale, auction? How long will it take?

Is there any chance the Assn. gets HUD to pay the monthly assessments for that unit? They should pay, but we're not holding our breath. Would have no idea who to contact.

Thanks in advance to those proving helpful information.

TimB4 (Tennessee)
Posts: 21,059

Posted:

The mortgage company is required to pay assessments from the day the foreclosure is finalized until it is sold. Typically, the Association won't receive any assessment payments until the unit is sold, so make sure you follow your Associations collection policy and file the lien as needed.

NOTE: Often mortgage companies who foreclose will delay filing the final paperwork in order to delay owing any assessments. Therefore, you should verify with the courthouse when the foreclosure is actually finalized.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Keep in mind a HUD foreclosure is not a bank foreclosure. House and Urban development owns it. It's one of those foreclosures you see the "Get rich" advertisements on TV. It's foreclosed on for back taxes not just non-payment of mortgage or dues. It's the final step in a foreclosure even beyond the bank or even the HOA foreclosures.

Do not expect the back dues to be paid for awhile. Plus this is no longer owned by a bank or person. The bank should have paid the dues while it owned it. So it's best to find out when it turned over a HUD foreclosure. Too late to collect from the bank since they no longer own it.

I would follow your procedures on filing a lien. However, don't expect to get the money owed. Just hope that someone new buys it and starts paying the dues. It may be a wash at this point when it goes to HUD.

Former HOA President

BrianB (California)
Posts: 2,820

Posted:

Just remember to keep track of the assessments, all late fees (they can sometimes add up), and any expenses used to collect. they can all typically be added to the eventual lien amount for potential recovery.

Your mileage may vary. Batteries not included.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Glenn

I am sure someone will say that in so and so state only specific charges can be recovered. Like dues but not fines, etc. While they might well be correct, just be sure you have a good, verifiable, and justifiable records even if some charges cannot be recovered.

As far as to what can be recovered in IL, this may require legal advice.

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