Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
HOA vs Mortgage foreclosure?
This month we've come to the sad realization that we need to give up and let our home go into foreclosure ( I'm not looking for advice on how to "save" it.) We were already behind on our HOA dues and had paid 1,000 or 2,000 owed to the collection company. Now because we'll be 5 days late on the second half they want to charge us an extra $500.
So we're thinking we may just not pay it. My question is how will it effect us if our HOA forecloses before our mortgage company?
By the way, I live in California. I'd really like authoritative references if you can provide them.
2 Answers
- Expert8675309Lv 71 decade agoFavorite Answer
If you are going to let the home go back, then don't pay it.
The HOA holds the fees against the property, not the owner.
The bank will pay those as part of the foreclosure process.
Source(s): Many, many years as a real estate broker and former mortgage broker/underwriter and always followed by my 7 "thumbs down" stalkers on Y!A. - Anonymous1 decade ago
I don't have any references but this is how it generally works. The mortgage will always be in the first lien position. So even if the HOA puts a lien on the property before the lender forecloses when the foreclosure sells the mortgage will be paid first. Then whatever is left will go to the HOA. This is where it changes by state but typically if the lien is not fully paid to the HOA they can still go after you for the left over amount.