Liens on houses under foreclosure

Started by PeggyH • 6 replies • 1186 views

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PeggyH (South Carolina)
Posts: 36

Posted:

Our asswociation is in South Carolina, we have a home that is currently under foreclosure proceedings. Is it too late for us to file a lien for non payment of association dues? If it is too late, do we contact the mortgage company that takes the house back to pay the past due association dues, and current association dues until it is resold?

MicheleD (Kentucky)
Posts: 4,491

Posted:

If it is currently under foreclosure, it is too late.

In most states, the new owners are only responsible for assessment fees incurred since the date title was taken, so my guess would be that you could not go to the new mortgage holder (such as the bank) to recover previous assessments.

However, you would be able to begin billing them for the assessments as of the date they took title.

HaroldS (Arizona)
Posts: 906

Posted:

Probably the mortgage owed is more than the current value of the home, so even if you had placed a lien you would not collect on it at foreclosure.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Good luck on collecting anything from the mortgage co or bank after the home has been foreclosed! Most, if not all, mortgages now have a PUD rider which states the mortgage co will pay the assessments if the owner is unable to, but I've never heard of that ever taking place.

BrianB (California)
Posts: 2,820

Posted:

everyone is correct.

One thing to think about however, is that now that a NEW owner has the home, they are responsible for all current dues. Since the new owner is a bank (most likely), remember to start collecting dues from them. You can lien them, after due process, rules, etc., if they fall behind. Banks are still liable for assessments, just like any other owner.

BradP (Kansas)
Posts: 2,640

Posted:

Peggy:

If it is under foreclosure proceedings then it is still owned by the previous owner...technically you could probably place a lien on it. But as others have said in a bank foreclosure good luck seeing any of your money especially if they haven't owned the house very long. But, if it doesn't cost much to place a lien it might be worth a roll of the dice.

Once the home is foreclosed on the bank will only be responsible for dues starting from the date of purchase.

RogerB (Colorado)
Posts: 5,067

Posted:

We are getting ready to place a lien on a property that is under foreclosure to protect the HOA's interests. We have also collected assessment amounts greater than the amount of the super lien when properties were foreclosed.

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