foreclosures/Bank responsibility

Started by JackieB • 14 replies • 1474 views

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JackieB (California)
Posts: 198

Posted:

I am more curious than having an actual issue. When a property is foreclosed and
returns to the lender (bank).....why aren't they(bank) held responsible for the monthly assessment fee.? Also if the proerty has a gate that needs painting, etc...why aren't they held to the task as each homeowner is?? This is in CA.

RogerB (Colorado)
Posts: 5,067

Posted:

Jackie, if owner is a bank due to foreclosure they are responsible for the assessment payments. But don't expect payment until they sell. The owner (bank?) is responsible for maintenance and can be cited. In Colorado if not corrected we would make needed corrections and assess the property. Again, payment would not be anticipated until resale.

JackieB (California)
Posts: 198

Posted:

thanks. Makes sense to me. Wonder if that holds true in CA??

RickR3 (California)
Posts: 42

Posted:

We have two homes that are now bank owned. One was about ready for us to attach a lien for non payment of the assesments. We are trying to find out how we proceed, espescially with the one that hasn't paid the assesments for a long period of time.

Rick

MikeS1
Posts: 668

Posted:

IN VA - We've got one right now, where the bank was very cooperative with addressing the laundry list of maintenance items that were going to be listed as defects on the Disclosure package within the HOA docs. I guess that there is some question as to whether or not the Bank must provide the HOA docs to the purchaser, but in this case, someone made a request and at this point, we're just down to one item on the list. They will pay the assessments at settlement whenever they resale the property.

LarryM3 (California)
Posts: 37

Posted:

We have had this occur here in Calif. We sent the assessment bills to the bank (BofA) and they were paid. We also notified them of clean up (weeds) on their property. Also paid.
Good luck, Larry

JackieB (California)
Posts: 198

Posted:

Thanks. Were the assessments paid monthly or at time of sale? Did they send in
the weed-wacker or did the BOD take care of it and send them the bill?

MicheleD (Kentucky)
Posts: 4,491

Posted:

In our association, a foreclosure wipes out the lien.

However, once the bank takes ownership, then we can begin billing it for the current assessments. We just can't collect back assessments.

This was all spelled out in our CC&Rs.

I believe that is the case because of Kentucky laws, however.

We are better off (in terms of ability to collect) if the homeowner just files for bankruptcy, then sells. Our lien remains intact in cases of bankruptcies.

SetenaN (Georgia)
Posts: 23

Posted:

This is great. Id rather send off the information and be told no than not do anything at all. We have a couple of foreclosures going on right now and personally I want to send the bills.

JS1 (Nevada)
Posts: 30

Posted:

Our association is asking the attorney, if in addition to filing a lien against the title holder (bank) - If we can also file a lien for action - ex: replacement of lawn w/i 3 months of sale.

LarryM3 (California)
Posts: 37

Posted:

Jackie, The bank paid us quarterly for the assessments. As far as the weeds they were furnished a list of local firms for maintenance and they hired directly.
Larry

JackieB (California)
Posts: 198

Posted:

Thanks for all the comments. we possibly were given some wrong info at at last
BOD mtg. (subject was on the agenda.)

BobO1 (Florida)
Posts: 1

Posted:

What about a home's lawn that has detiorated to a point that it needs replacement. Can the bank be forced to replace it before sale or does the HOA have to replace it and place a lien on the property? Can the HOA refuse to sign paperwork until the property id brought up to acceptable standards?

HaroldS (Arizona)
Posts: 906

Posted:

I'm confused why a bank's ownership of an HOA property exempts them from having to pay assessments on a timely basis but is allowed to wait to pay them until the property sells. Yet properties still owned by ordinary folks are lien-ed with interest and legal costs added. Are you at least getting interest from these banks on the unpaid assessments?
I wonder if an owner could challenge this arrangement? After all, the argument for requiring timely payments is because of on-going association expenses - yet in this time of growing repossessions the loss of this current income has to affect operations with the burden falling on all the rest of us who are paying our assessment timely. Just doesn't seem fair. Harold

GloriaM (North Carolina)
Posts: 829

Posted:

Harold:

Banks having Title are held to the same standard; they must upkeep the property, pay the assessment and if they do not late fees are attached as well as the bank can be taken to a hearing and fines attached for not maintaining the property. What Roger was stating is in most cases the bank won't pay for all of the above until it sells the property.

If a bank has held Title for a while and the assessments are not paid, we have liened a bank in the past. However most banks after taking Title sell the home rather quickly. They do not want to hold on to it for long.

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