What can I do if the bank will not foreclose on the property? 3 Answers as of April 20, 2012

my wife filed bankruptcy in 2010 before we were married and it was approved; however the attorney did not include the HOA fees for her condo but inlcuded the mortgage. My wife thought everything was taken care of and walked away from her condo not realizing the HOA fees were accumulating. Now the condo has an offer and the bank will not include the past due HOAs in the sale nor will the association negotiate the fees down. The past due amount is ~$5000. Is there anything that can be done to mitigate the cost or amend a prior bankruptcy ruling or are we simply stuck and will have to pay the past due HOA fees? The bank will not foreclose on the property either so title remains with my wife.

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Charles Schneider, P.C.
Charles Schneider, P.C. | Charles J. Schneider
There is no such thing as including Condo Assoc. fees in a bankruptcy under chapter 7 as the post petition fees are not dischargeable. The attorney could not have included them. His only failure is failing to tell you. But even had he told you it would not make any difference in most cases. You would still owe them until ownership of your condo is transferred to someone else. The reason why the bank does not foreclose is because they want you to bear the assoc. fees.
Answer Applies to: Michigan
Replied: 4/20/2012
Olson Law Firm | Edward M Olson
You cannot force the bank to foreclose. They have the right .. but not the obligation... to foreclose any time you are in default. If your wife has "walked away" from the condo, as you say, then it should not be her problem. This is a dispute between the condo association and the mortgage company. It is not clear, from these facts, whether the condo association claims have been discharged. If the condo association knows about the bankruptcy NOW.. then the burden should be on them to come forward and claim an exception from the discharge. There may be strategies you can employ to get your self out of this mess. However, I recommend that you hire an attorney who will review the actual filings and claims in your case before making a recommendation.
Answer Applies to: Michigan
Replied: 4/19/2012
Law Office of Lynnmarie A. Johnson
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
Unfortunately as long as the mortgage co didn't foreclose, any HOA fees that came after the bankruptcy are considered new debt and are owed, which is probably why the mortgage co didn't foreclose, they didn't want to have to pay them Try seeing if the HOA will settle for a lesser amount, they probably don't want to see the condo set empty. If they truly won't settle for less, either pay them or let the HOA foreclose, or see if you can pay them out of the closing fees.
Answer Applies to: Michigan
Replied: 4/19/2012
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