Interpreting a member Property Report

Started by EdS8 • 3 replies • 1476 views

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EdS8 (California)
Posts: 2

Posted:

The Board of our small HOA recently was notified that a member household was filing for Chap 7 bankruptcy. Trying to figure out what to do, I paid for an online property report for the address. I need some help in understanding what I'm looking at.

There are two items in the Sales history. One was recorded 3/2004 and shows only one of the couple as owner and a conventional mortgage of approx $450K. The deed type is Grant Deed. The other, recorded 9/2005, shows both names as owners and a 15 year mortgage of approx. $130K. The deed type is Interspousal Deed. The question is what this means. Is the total mortgage $450k+$130k, or only $130K? The difference is if $580K is owed they are probably going into foreclosure soon with nothing left for the back HOA dues so we should probably just let nature take its course. OTOH, if it's only $130 we should probably agressively pursue collection... Smal Claims Court, file a lien, hire a collection agency, etc.

BTW, it also shows several county tax liens, some of which seem to be duplicates.

Any thoughts?

TIA

MaryA1 (Arizona)
Posts: 7,043

Posted:

Ed,

First of all has the HOA filed a lien for the delinquent assessments? Secondly, I think you should have had a credit report done instead of this property report which only pertains to one debt. A credit report would show ALL outstanding debts and give you a better picture of their obligations. Also you should find out exactly what a Chapter 7 bankruptcy means to the HOA. Will the HOA be listed as a creditor and stand to gain some $$$.

BTW, the HOA should be agressively pursing collection regardless of what the mortgage is on the property. However, the fact that the prop owner is filing bankruptcy, it may be impossible for the HOA to collect anything. You can't get blood out of a turnip! Some delinquencies just have to be written off.

EdS8 (California)
Posts: 2

Posted:

Quote:

Posted By MaryA1 on 05/13/2010 11:19 AM
Ed,

First of all has the HOA filed a lien for the delinquent assessments? Secondly, I think you should have had a credit report done instead of this property report which only pertains to one debt. A credit report would show ALL outstanding debts and give you a better picture of their obligations. Also you should find out exactly what a Chapter 7 bankruptcy means to the HOA. Will the HOA be listed as a creditor and stand to gain some $$$.

BTW, the HOA should be agressively pursing collection regardless of what the mortgage is on the property. However, the fact that the prop owner is filing bankruptcy, it may be impossible for the HOA to collect anything. You can't get blood out of a turnip! Some delinquencies just have to be written off.

Thanks. No, we've never had to do anything like this. In the past, past due accounts have been paid in escrow because the property soon sells. Also, we are a small group, only 40 homes with a pool being the only common property. Are dues are only $40/month (recently upped from $30), so have never retained any kind of professional management or leagal adviser. Are you saying we should place a lien? Don't we have to get a curt judgemnet first?

How much will it cost to get a credit report and how do I go about it?

Regarding the Chap 7, all we have is a form letter from an attorney (dated almost a year ago) saying they have "undertaken representation of [our members] in a Chapter 7..] I called them and they said they are "currently gathering needed information" and "yes, we do know about the HOA claim." From what I've read if there's no collateral a creditor in these things doesn't get anything.

So, we have to balance aggressive pursuit against the cost and how much we might recover for the effort.

GlenL (Ohio)
Posts: 5,491

Posted:

Ed, you need to start another account with this homeowner. Anything he owed prior to his filing bankruptcy will more than likely be discharged i.e. he won't have to pay. Any debts incurred after he filed are fair game.

Studies show that 5 out of 4 people have problems with fractions

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