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PaulaW2 (Hawaii)
Posts: 23
Posted:
We have an interesting situation that was recently uncovered and is now beginning to cost us a lot in legal fees. One of our owners owns an empty lot, all of the mail sent to them has been returned as undeliverable, I went to the property tax office to see who they show as the owner and the address of record, they show the same information that we have and all of their mail has been returned as well. However, all property taxes are current and always have been.

I was finally able to gain an e-mail contact by checking various resources and we have now connected with the property owner. He says he is not the owner, the property was foreclosed on back in 2008. We recently sent a demand letter for dues via our lawyer, and are ready to proceed with a lien. The problem is that the property owner has gotten cranky at the current mail and demands, called our lawyer and provided information about the foreclosure proceeding. Our lawyer checked in with the bank handling the foreclosure and their lawyer and we now know that the foreclosure proceeding was curtailed by the bank and there has never been another order to reinstate the proceedings.

The lawyers have been talking, and evidently the bank may be planning to move forward with the foreclosure, but there is an issue with FEMA because of our recent hurricane Lane so that is stalled for awhile. Our problem is that all of this is costing in time spent by the lawyers. Who can we anticipate passing on the legal fees to? It's just gotten so messy, this is the very much condensed version. At this point it appears the original property owner still owns the property even though he has not paid a mortgage payment or property taxes in ten years, and our lawyer has recommended that we file the lien naming him. (Our HOA has only recently been turned over to the homeowners, prior to that there were no dues). Property tax office is not telling us who has paid the property taxes over the years, but we know they have been paid. The demand letter and then the lien should be about $200, but now we are into this for over a thousand dollars. None of that can be expected to come from this property owner.
GlenM4 (Tennessee)
Posts: 141
Posted:
If the owner still owns it, then he owes the due. however if the bank has a foreclosure on it, then there is a good chance you will not get any of the due unless your lien was before the banks foreclosure. Once the bank takes over the bank will be the one to pay (only current) dues. We usually wait till house is sold and the bank pays all dues then.

PaulaW2 (Hawaii)
Posts: 23
Posted:
The very real problem is that it's unclear who actually owns the property - the bank or the property owner. The foreclosure proceedings that were curtailed by the bank happened over ten years ago. Then nothing happened except the property taxes were paid by someone. Property tax records show the homeowner as the owner, he says "No, I'm not, the bank foreclosed.", the bank hasn't said anything yet.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I would file a lien in the owner's name as advised by the lawyer. Know your probably throwing money away in collecting. Your basically filling a hole. A foreclosure is a stop the bleeding measure nothing more. The bank is going to get the money first and foremost if there is money owed on the property. The HOA is 2nd in line to get paid with a lien or doing a foreclosure. (Hence why never foreclose on property bank is foreclosing on. Your doing the work of the bank).

The bank if they are the owners, will owe the dues when it comes to when they sell it. The question of lien on the bank may need to play out once ownership is determined. Just don't foreclose. It's not worth it.

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
Paula,

Your attorney should be able to find out who has been paying the taxes.

GenoS (Florida)
Posts: 4,276
Posted:
Aren't liens filed against the property and not the owner per se? Different states have different types of liens and procedures for filing them but I'm pretty sure I heard that somewhere. Maybe it only pertains to FL.
RoyalpitA
Posts: 195
Posted:
This pertains to South Carolina and 'probably', but not certainly, many other states as well:

The property owner is the LAST recorded with the Register of Deeds.

ANYONE can pay the property taxes.

eg. a bank forecloses but does NOT record said foreclosure PROMPTLY - the foreclosed person is still the legally recorded owner - the bank will, however, pay the taxes to prevent a potential tax sale - the bank may 'sell short' - THEN the foreclosure is recorded and the new owner subsequently recorded - the loser(s) = the HOA's assessments remain UNPAID

To determine the actual owner at any given time involves a trip to the Register of Deeds @ the County Seat to determine what is actually RECORDED.

The 'tax info' was correct at one point, but, the recorded deed RULES.

This info is from personal experience as the Treasurer with BOTH foreclosures AND estates AND 'reverse mortgages'.

LET THE GAMES BEGIN

RECORD THE LIEN - hopefully it will still apply to the new owner who will NOT be able to obtain a mortgage while it is in place.

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