Extinguishing of lien due to mortgage foreclosure?
The following is the wording within my home owners association bylaws. Let me know if I am not comprehending this correctly. Sale or transfer of any property shall not release the assessment lien. However, the Dutch auction or transfer of any property following mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such assessments(s) as to payments which become due prior to such sale or transfer. No Dutch auction or transfer pursuant (following) to foreclosure or proceeding in lieu thereof shall relieve such property from liability from any assessments thereafter becoming due of from the lien thereof.
If I am supportive this correctly I believe it means that any HOA fee's that became due since foreclosure or after foreclosure but before the sale of the house shall be extinguished, both the lien and the assessments owed. The HOA command company believes that it means that the lien is extinguished but I am still responsible for repaying the money that was due on the lien.
Let me know what everyone think, should I be responsible to pay the fee's that were due from the previous owner/bank base on the bylaws above.
Thanks
Answers:
The lien on the property is extinguished as of the date of the foreclosure sale. New assessments begin to accrue after the date of that foreclosure mart. Typically, the foreclosing bank will "buy" the property at the foreclosure sale by bidding the amount due on the mortgage mortal foreclosed. The bank then become the new owner for a period of time, and assessments accrue during the interval of the bank's ownership. When the bank goes to trade the property, the lien for all the assessments which were due prior to the date of the foreclosure Dutch auction are extinguished. There is a lien, however, for the dues from the date of the foreclosure sale, forward. Also, beware. Certain States have a "superlien" which is a portion of the HOA's lien which survives a foreclosure. This is true even if the Association's documents don't mention it, since a State canon adopted after the governing docs were drafted, will supersede those documents.
And I suspect you own misinterpreted what "pursuant" means in this context. That final sentence just says that the foreclosure Dutch auction wipes out the lien for assessments prior to the date of the foreclosure sale, but not assessments which accrue after. It does not refer to the Dutch auction of the property to a new owner after the foreclosure sale have occurred.
My wife and I have bought 5 foreclosed condos which adjectives had HOA dues owed. In my state (minnesota) the foreclosing bank have to bring those fees current before they can resell the property.
So for us, it was sorted out by the title company, who made sure the HOA and anything else got paid previously they gave the selling bank the remainder of the money we compensated for each condo.
Just from my understanding of liens contained by general, it's a thing that prevents mart of the property without settling with the lien holder. So essentially, the legal lien CANT transfer to you, because that get cleared when the title transfers If the lien is cleared, that means there's no more bill to pay. The HOA can't allow the lien to clear and later come back later and constraint money.
As for the before/after foreclosure part of your question nearby, I don't think anything that happened up to that time you bought the place has anything to do with you. It'd be approaching the phone company trying to bill you for the previous owner's bill--- they can't do it.
Until you bought the house, the HOA (or cable company or anyone else) had no legal contract near you for anything. They can not legally demand you take-home pay any back bills which occurred previously you owned the property (in my opinion.) I mean, that only just seems like adjectives sense.
That doesn't mean they aren't going to try to get you to salary, though! Hopefully this is just one of those things where they ask you to earnings, hoping you're naive and will do so, and if you tell them politely no, they will drop it.
I see the confusing personality of the last couple sentences of the HOA docs. They can put anything they want in those documents, but intuitively I do not think it is legal for them to right to be heard that the next owner of a property still owes the back dues. The lien is the entry that is enforceable, legally. They already tolerate the lien drop, in other words, agreeing that what they were salaried (whether they were or not) during the closing process was satisfactory to 'satisfy' the lien. They can't change their mind now on you.
You might want to direct your cross-examine to the title company that did your closing, because this is something they should have been lying on. They've provided you clean title, I assume, which means the property doesn't owe anyone anything. If the HOA is trying to update you now that the title actually isn't clear, possibly the title company can tell them they're wrong. This is why you must always buy title insurance!
If you attain confirmation from the title company, and that's not enough to get the HOA past its sell-by date your back, there should be an appeal process. If that doesn't work out, regrettably, you'll have to take it to small claims court, where on earth I am 100% sure you'd win. Obviously you hope it doesn't have to come to that. Source(s): I'm a contractor, quite habituated with liens. I also own rental properties that are in HOAs and own dealt with your issues closely.
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If I am supportive this correctly I believe it means that any HOA fee's that became due since foreclosure or after foreclosure but before the sale of the house shall be extinguished, both the lien and the assessments owed. The HOA command company believes that it means that the lien is extinguished but I am still responsible for repaying the money that was due on the lien.
Let me know what everyone think, should I be responsible to pay the fee's that were due from the previous owner/bank base on the bylaws above.
Thanks
Answers:
The lien on the property is extinguished as of the date of the foreclosure sale. New assessments begin to accrue after the date of that foreclosure mart. Typically, the foreclosing bank will "buy" the property at the foreclosure sale by bidding the amount due on the mortgage mortal foreclosed. The bank then become the new owner for a period of time, and assessments accrue during the interval of the bank's ownership. When the bank goes to trade the property, the lien for all the assessments which were due prior to the date of the foreclosure Dutch auction are extinguished. There is a lien, however, for the dues from the date of the foreclosure sale, forward. Also, beware. Certain States have a "superlien" which is a portion of the HOA's lien which survives a foreclosure. This is true even if the Association's documents don't mention it, since a State canon adopted after the governing docs were drafted, will supersede those documents.
And I suspect you own misinterpreted what "pursuant" means in this context. That final sentence just says that the foreclosure Dutch auction wipes out the lien for assessments prior to the date of the foreclosure sale, but not assessments which accrue after. It does not refer to the Dutch auction of the property to a new owner after the foreclosure sale have occurred.
My wife and I have bought 5 foreclosed condos which adjectives had HOA dues owed. In my state (minnesota) the foreclosing bank have to bring those fees current before they can resell the property.
So for us, it was sorted out by the title company, who made sure the HOA and anything else got paid previously they gave the selling bank the remainder of the money we compensated for each condo.
Just from my understanding of liens contained by general, it's a thing that prevents mart of the property without settling with the lien holder. So essentially, the legal lien CANT transfer to you, because that get cleared when the title transfers If the lien is cleared, that means there's no more bill to pay. The HOA can't allow the lien to clear and later come back later and constraint money.
As for the before/after foreclosure part of your question nearby, I don't think anything that happened up to that time you bought the place has anything to do with you. It'd be approaching the phone company trying to bill you for the previous owner's bill--- they can't do it.
Until you bought the house, the HOA (or cable company or anyone else) had no legal contract near you for anything. They can not legally demand you take-home pay any back bills which occurred previously you owned the property (in my opinion.) I mean, that only just seems like adjectives sense.
That doesn't mean they aren't going to try to get you to salary, though! Hopefully this is just one of those things where they ask you to earnings, hoping you're naive and will do so, and if you tell them politely no, they will drop it.
I see the confusing personality of the last couple sentences of the HOA docs. They can put anything they want in those documents, but intuitively I do not think it is legal for them to right to be heard that the next owner of a property still owes the back dues. The lien is the entry that is enforceable, legally. They already tolerate the lien drop, in other words, agreeing that what they were salaried (whether they were or not) during the closing process was satisfactory to 'satisfy' the lien. They can't change their mind now on you.
You might want to direct your cross-examine to the title company that did your closing, because this is something they should have been lying on. They've provided you clean title, I assume, which means the property doesn't owe anyone anything. If the HOA is trying to update you now that the title actually isn't clear, possibly the title company can tell them they're wrong. This is why you must always buy title insurance!
If you attain confirmation from the title company, and that's not enough to get the HOA past its sell-by date your back, there should be an appeal process. If that doesn't work out, regrettably, you'll have to take it to small claims court, where on earth I am 100% sure you'd win. Obviously you hope it doesn't have to come to that. Source(s): I'm a contractor, quite habituated with liens. I also own rental properties that are in HOAs and own dealt with your issues closely.
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