Do we still need to pay HOA fees? 8 Answers as of January 25, 2012

Usually, HOA fees become liens and are paid during the foreclosure process. If they weren't, any fees you incur after the bankruptcy filing would be your responsibility. However, the new owner would probably pay those.

Unfortunately HOA dues are different than most debts. Only Pre-petition HOA dues can be discharged. Any dues accruing between the date of your bankruptcy filing and the date the property went back to the bank or was sold at auction you can be held responsible for.

You have to pay the home-owner's association dues for the time period of the filing of the bankruptcy until the completion of the foreclosure. The dues for the time before filing were discharged along with the loan on the house.

HO fees after your bankruptcy filing are owed by you. The foreclosing bank does not have to pay those fees. Any lien by the homeowners association is wiped out by the foreclosure sale by the first deed of trust holder.

Any past due HOA fees owed up to the time you filed bankruptcy in July, 2010 are discharged, if you received a discharge in your bankruptcy case. The problem comes in when a home with HOA dues is foreclosed upon, but the title doesn't actually transfer. This appears to be the case with you. The home foreclosed in May, 2011, however, it just sold in November, 2011. Those fees should have been paid by the Lender that foreclosed because you are correct in that liens must be cleared to clear title for the purchaser [If there was a lien] Generally, the homeowner remains liable for HOA dues during the time they remain on title to the property. This poses a problem to folks like yourself who have otherwise abandoned the property and the home was foreclosed, yet the bank fails to transfer title and take back the property from you. It's highly likely that you may be obligated to pay HOA dues from the time your bk case was filed in July, 2010 up to the time of foreclosure in May, 2011. Call them to work out a payment plan and call the escrow company to find out if the past due fees were paid through the sale transaction.

It depends on whether or not they in fact had a lien. The past due amounts are not automatically liens.

You are still responsible for the HOA fees. They do not get paid through a foreclosure sale unless they had a lien AND that there was sufficient funds from the sale of the home to pay them.

One, you should look into whether the arrears was paid or not through the new sale. If not, then the HOA can still come after you and I have seen them do so for months after the bankruptcy filing but prior to the sale of the home. If the dues are not paid by the new owner then they will seek recovery from you.