Government agency foreclosure on homeowner

Started by JimD17 • 2 replies • 1622 views

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JimD17 (South Carolina)
Posts: 15

Posted:

An agency of the United States government foreclosed on a unit in our HOA in Sept of 2012. They have held legal title to the unit since. They have never paid HOA fees although they have been billed monthly including late fees & interest. Our Hoa has a lien on the property. Is the government somehow exempt from paying HOA dues. They have never listed the unit for sale.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

They may have to pay but does not mean on your timeline. Liens get dismissed when paid. Meanwhile, the amount owed accumulates plus interest. Banks tend to wait till they sell before they pay up. I suspect the HUD may do it too. It sounds like a tax type of foreclosure done by HUD. That is usually done after a bank has foreclosed or unpaid taxes.

You all may never see this money. So use it as a learning lesson. Make sure to have a proper lien policy in place and keep up with paperwork.

Former HOA President

RichardP13 (California)
Posts: 1,767

Posted:

If the home loan is an FHA loan, then it is insured by HUD. They will have the authority to foreclose if the loan goes into default. Like the banks, HUD has a responsibility to pay HOA assessments form the date of the foreclosure. Have someone search title records for a name and address of the new owner and then send them a statement to pay on a monthly basis, or whenever assessments are actually due.

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