In_trouble asked:
My sister is already facing bank foreclosure but she also just got a letter saying that she will be facing homeowner’s association foreclosure because of unpaid dues. They’re filling a lien against her … I don’t understand the difference … I thought only banks could foreclose.
My sister is already facing bank foreclosure but she also just got a letter saying that she will be facing homeowner’s association foreclosure because of unpaid dues. They’re filling a lien against her … I don’t understand the difference … I thought only banks could foreclose.
Nope they both can since ownership is dependent on paying both your mortgage and association fees.
ur sis will find that homeowner associations have in the covenants or bylaws the ability to lien unpaid dues. Any valid lien can be foreclosed on. A mortgage is just another lien that can be foreclosed on. If the lender is foreclosing(most likely in 1st position) she does not have to worry about the association foreclosing. They would have to pay off the 1st to get title. At this point it is moot because the home will be lost anyways, unless she can get a loan mod.
She agreed to pay the HOA fees when she bought the condo. If she doesn’t pay, the HOA can go after her for the money or the condo. They are choosing to go for the condo. The problem for the HOA is that they will have to pay the mortgage if they own the condo; and they don’t want to pay the mortgage. The bank will end up owning it..