Reverse Mirtgage Foreclosure

Started by BarbaraD12 • 2 replies • 75 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

BarbaraD12 (Washington)
Posts: 24

Posted:

A homeowner with a reverse mortgage passed away and left the property to a relative. The relative has not paid the dues for several months and apparently did not pay off the mortgage and now the bank is foreclosing.
Is the bank now responsible to pay the association for the unpaid dues?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Probably not.

If it is foreclosed on, the individual will lose the house and all liens (including the Associations) will be erased to the date of sale.
The individual, company or bank that purchases the home at foreclosure will owe dues from the date of sale (nothing before that).

Was the deed transferred to the relative and recorded with the County/City? If yes, then that individual would owe from the point of transfer/sale forward but not unpaid dues of the previous owner.
If the previous owner had unpaid dues and if the estate is not closed, the Association could make a claim on the estate for unpaid dues.

The Association may need to seek legal advice on this one.

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By BarbaraD12 on 07/07/2025 8:15 PM
A homeowner with a reverse mortgage passed away and left the property to a relative. The relative has not paid this property isthe dues for several months and apparently did not pay off the mortgage and now the bank is foreclosing.
Is the bank now responsible to pay the association for the unpaid dues?

You need to speak to your HOA’s attorney. This property probably was not transferred and is still in the estate.
If your HOA didn’t sleep on its rights and filed a lien, there is a good chance your HOA can recover all the funds because there is likely considerable equity that will be paid to heir when the property sells.

Folks, if the owner in your HOA has dived and the estate is not paying assessments, file a lien asap.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here