Judgement on Dues owed on vacant lots

Started by CharlesM19 • 6 replies • 661 views

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CharlesM19 (Pennsylvania)
Posts: 1

Posted:

I purchased vacant lots at a tax sale in 2006 in the community I own my home in. I lost all the lots to taxes. I have a judgement against me for $45,000 from the association for the vacant lots. If I sell my home what happens with the judgement??? Does it stay with me or go with the buyer ??? I don't have any other assets.

SheliaH (Indiana)
Posts: 6,964

Posted:

That's a legal question, so your best bet is to hire an attorney. If you don't have any other assets, you might want to have your attorney go to the association RIGHT NOW and try to negotiate a settlement where some, perhaps all of the proceeds from selling your home would go towards the judgement. That's the honorable way of doing this, so please give it some thought. It may wreck your credit for a while, but you can climb out of that eventually.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By CharlesM19 on 02/12/2019 8:17 AM
I purchased vacant lots at a tax sale in 2006 in the community I own my home in. I lost all the lots to taxes. I have a judgement against me for $45,000 from the association for the vacant lots. If I sell my home what happens with the judgement??? Does it stay with me or go with the buyer ??? I don't have any other assets.

Did the HOA put a lien on your home? If so, then until the lien is cleared, you cannot sell it.

When a HOA member is behind on dues, nationwide the custom is for the HOA to first put a lien on the member's home and then possibly go to court to collect.

Call the HOA management and ask if a lien has been placed. Or report to your county clerk's office to confirm this.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

So you had a Tax lien foreclosed on? That is to the government. The other money owed is most likely to the bank/HOA. Do you owe the bank money on the loan to buy the property? Did you neglect paying your HOA dues as well?

It's important you know there is a lien against you by the HOA or the bank. It could be getting blood from a turnip situation here. Which means they could decide to foreclose on that lien. So if you can't afford to pay the lien, then you may ask them to go on and foreclose.

No one is going to make money in this. However, letting them foreclose wipes your debt off their records. Your debt with them will no longer increase. It's a bit more complicated with the Tax Lien situation. Best to ask an attorney on this.

Former HOA President

TimB4 (Tennessee)
Posts: 21,062

Posted:

As others have said, check with an attorney.

My understanding is a judgement goes with the person.
In your case, the Association (who has the judgement) can take actions to seize any of your assets (bank accounts, any property (in or out of State), etc.) and, with the courts permission, garnish your wages to satisfy the judgement. This is why most HOA attorneys say to go for a judgement vs. just a lien or foreclosure.

However check with an attorney.

Any buyer would have to satisfy any liens to have a clean title.
Any buyer would only owe the Association assessments from the date of purchase forward (unless you are in FL).

TimB4 (Tennessee)
Posts: 21,062

Posted:

Keep in mind that a judgement means there was a court case and a court ruled you owe the money.

See:

HOA Put a Judgment Against Me for Not Paying HOA: What Can I Do?

Judgments VS. Liens for Delinquent Home Owners Association Assessments

Your best bet, expecting you don't have the money or are simply trying to avoid paying the money, might be to declare bankruptcy.
See:

Are Lawsuit Judgments Discharged by Bankruptcy?

You need to seek actual legal advice from an attorney.
Perhaps one who specializes in bankruptcy.

RoyalP
Posts: 1,104

Posted:

Bankruptcy Will Not Automatically Remove Liens from Your Property

When you receive a bankruptcy discharge, it wipes out your personal liability for all discharged debts. This means that you are no longer obligated to pay those debts and creditors can’t sue you personally to collect them. However, simply filing for bankruptcy does not automatically remove any liens that were placed on your property prior to filing your case.

If a creditor obtains a lawsuit judgment against you, it can enforce that judgment in different ways including garnishing your wages, levying your bank accounts, or placing liens against your properties such as your house. If a judgment lien has been placed on your property, you must file a motion with the court in order to remove it.

However, not all judgment liens can be removed through bankruptcy. Whether a judgment lien can be removed depends on the value of the property, the amount of the lien and other encumbrances on the property, and your state's exemption laws. Because the rules and procedures regarding lien removal can be complex, if you have liens on your property, consider talking to a knowledgeable bankruptcy attorney in your area prior to filing your case.

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