Am I still responsible for the HOA dues after my bankruptcy? 18 Answers as of March 06, 2014

I have been told that I am still responsible for my HOA dues after my bankruptcy. I had Bank of America who waited more than 2 years to foreclose on the property. Even after my bankruptcy Bank of America sent me many letters after regarding payment on the second mortgage and put locks on the doors and entered my house to change locks and put letters on the windows. My question is if I'm responsible for the HOA and the title never got changed because they dragged their feet on changing it they took possession of the house. Am I still responsible for the HOA and am I able to do anything about Bank of America?

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Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
This is an interesting question. On the one hand, as far as bankruptcy laws go, HOA that accrues after the bankruptcy was filed is not dischargeable and homeowner remains liable for any HOA fees incurred after the case is filed. Normally, homeowners may choose to remain in the property, pay the HOA fees, until the foreclosure happens or they may even rent out the property and pay the HOA fees from rents collected. But here, you were locked out of the property and yet the foreclosure did not happen it would seem that the lender has illegally deprived you of possession. Perhaps you have a claim against the lender in the state court. I hope someone else here can provide the answers but if not I would seek out assistance from an attorney who handles real estate and civil litigation matters. The HOA won't care, they'll pursue you for what is owed, but perhaps you can get redress with the lender.
Answer Applies to: California
Replied: 3/6/2014
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
All HOA dues accumulated up to the date of filing are discharged. If you accrue dues after filing, you have to pay for those. Most lenders take a long time to change title and most attorneys advise you to stay in the house or wait until after title changes to file the bankruptcy. There are more options in the planning stages.
Answer Applies to: California
Replied: 3/6/2014
Law Office of Marlin Branstetter
Law Office of Marlin Branstetter | Marlin Branstetter
The legal owner of the property is responsible for HOA dues. Any dues that came due after filing the petition are post-petition debts and cannot be discharged. If the bank effectively took possession without foreclosing you might have success proceeding in state court by claiming they were the in effect the owners since they locked you out of the property otherwise you may be stuck with the dues. You should consult an experienced real estate lawyer for advise.
Answer Applies to: California
Replied: 3/5/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The law is that you are responsible (liable) for the HOA dues until the title to the property is transferred via the foreclosure sale (the public trustee will issue a deed to the highest bidder at the foreclosure sale, usually the foreclosing mortgage company). I am not aware of any law that would force the mortgage company to foreclose sooner rather than later. Therefore, you would be responsible for the HOA dues from the day after you filed your BK up until title to your home is transferred.
Answer Applies to: Colorado
Replied: 3/5/2014
Law Offices of Linda Rose Fessler | Linda Fessler
If you put past due HOA fees on your BK you are not responsible for those. But any fees going forward you are obligated to pay until title changes. I would not pay them though. Let them file a lawsuit. In the meantime, you should sue Bank of America for all their wrongdoings and I am not just talking about the HOA fees. I am speaking of the foreclosure, their loan, and other numerous violations that Bank of America has been guilty of in other cases and no doubt is guilty of in your case. Please give me a call so we can discuss it.
Answer Applies to: California
Replied: 3/5/2014
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Pursuant to bankruptcy law you are responsible for all post filing HOA dues until you are no longer the record owner of the property. This is true whether your lender was slow to foreclose or not. Typically banks have been slow to foreclose on less desirable properties especially slow on condos. I think they do this because the bank does not want to pay the HOA dues.
    Answer Applies to: California
    Replied: 3/5/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Technically you owe the HOA fees, but if B of A changed the locks, you could cross complain against them.
    Answer Applies to: California
    Replied: 3/5/2014
    DunlapWeaver PLLC
    DunlapWeaver PLLC | David Ludwig
    Any HOA assessments that arose before the bankruptcy was filed should have been discharged in the bankruptcy. However, a homeowner is responsible for property taxes and HOA dues that arose after the bankruptcy was filed and before the bank foreclosed on the property. During this time, the homeowner's name is still on the deed, and the person whose name is on the deed is legally responsible for these debts. Occasionally, if these debts are still not paid when the foreclosure process has been completed and the bank tries to re-sell the property, the bank will voluntarily pay them. This is because most prospective purchasers would not want to purchase the property with tax or HOA liens attached to it. However, the bank does not have to pay these claims when the property is re-sold, and the HOA or county can file a collections lawsuit before the property is re-sold.
    Answer Applies to: Virginia
    Replied: 3/5/2014
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    HOA fees for the period after filing bankruptcy until you no longer are on the title are the responsibility of the homeowner even though you may have moved. This is an express exception in the bankruptcy code and remains as a major problem for many who filed bankruptcy.
    Answer Applies to: Florida
    Replied: 3/5/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    I understand your frustration at hearing you are responsible for paying the fees that accrued after your bankruptcy, but had you sought out legal advice earlier, you could have planned for this issue. The mortgage company has no obligation to foreclose on your timetable.
    Answer Applies to: Nevada
    Replied: 3/5/2014
    Kirby G. Moss PC | Kirby G. Moss
    If the house still in your name, you may be responsible for those dues that accrued post-petition.
    Answer Applies to: Indiana
    Replied: 3/5/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Unfortunately, as long as you are the owner of record you remain responsible for the HOA fees. A chapter 7 bankruptcy filing does not change that.
    Answer Applies to: Colorado
    Replied: 3/5/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    You are responsible for any post-petition HOA assessments as long as you are on title. I know it doesn't seem fair, but it is the law. You might want to argue in court that the bank took possession; however, the cost of such litigation would, most likely, be expensive.
    Answer Applies to: California
    Replied: 3/5/2014
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    Yes, the Bankruptcy Code says in Section 523(a)(16) that Homeowner's Association dues are not discharged so long as you have a "legal, equitable, or possessory" ownership interest in the house. And Bank of America, N.A. has no legal obligation to foreclose on the house. They can let it sit if they like, until they are darn good and ready to conduct a foreclosure sale and get it out of your name. I have suggested to quite a few of my clients that they do a short sale on the properties, if the mortgage companies are not going to promptly foreclose. There are companies that will handle this for you, and be paid for all their expenses from the sale of the house. And the Homeowner's Association dues typically are paid at the sale, also.
    Answer Applies to: Texas
    Replied: 3/5/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Yes, you are liable for all HOA fees after you filed bankruptcy and no there is nothing you can do about Bank of America. The same rights that protect people who want a slow foreclosure protect you. You probably should have stayed in the house until it foreclosed, signed a deed in lieu of foreclosure or short sale the condo.
    Answer Applies to: New York
    Replied: 3/5/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You are responsible for as long as you are title holder to the property.
    Answer Applies to: Nevada
    Replied: 3/5/2014
    Stephens Gourley & Bywater | David A. Stephens
    The chapter 7 discharge only discharges pre-petition debts. Thus, HOA fees accruing after you file Chapter 7 are not discharged. The HOA can collect them from you. You may have an argument that Bank of America has seized possession and therefore they are secondarily liable.
    Answer Applies to: Nevada
    Replied: 3/5/2014
    Scott Goldstein | Scott Goldstein
    You are still responsible to the HOA until the property is sold at foreclosure sale.
    Answer Applies to: New Jersey
    Replied: 3/5/2014
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