recovering money post foreclosure

Started by MS9 • 6 replies • 1106 views

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MS9 (California)
Posts: 13

Posted:

We had some accounts with a lien on them and later bank foreclosed upon them. Our management company recommended going with this other company to recover money from people. It charges 35% of any money they recover from on behalf of the HOA.

I am wondering if this is a reasonable option.

Realistically, will we be able to recover this money at all.

Are there any other options to deal with such accounts.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

To paraphrase a line from THE HUSTLER (Eddie to Bert):

"Sixty-five percent of something is better than one hundred percent of nothing."

And if you have no expectation of any recovery if you do the leg work yourselves, why not give it a shot?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Another option would be to sue the person in small claims court.

But giving someone else 35% to do all the legwork is a nice deal too.

KirkW1 (Texas)
Posts: 1,665

Posted:

If, and only if they don't charge something up front I would so go for it.

As for the small claims court idea, it is a good theory. But perhaps one should consider the hard reality that people who have their houses foreclosed generally do not have money sitting in an account. If they did, they would have used it to stop foreclosure.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Kirk,
No so in 2009. Many people are buying new houses and just walking away from the old ones. Lets say they owe $500,000 on the old house and just bought a new one for $200,000. They just stop paying for the old one. The bank has no other choice but foreclosure.

Or they just give up the house and decide to rent instead. They still owe the bill, your HOA and your property value depend on it. Its up to the small claims court judge to decide what they can pay and how often, not your board of directors/president.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Well, not to mention there's no expiration date for your judgment.

So you can always garnish wages, etc, now, later, or a month from later. . .

EverettC (Maryland)
Posts: 90

Posted:

In most if not all states, judgments do have expiration dates. I believe that California judgments are valid for 10 years, but may be extended for additional periods of 10 years on application by the judgment holder prior to the expiration date.

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