Saturday, April 19, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Can the HOA come after me for lien, extra fees?

jones column sig

By
From page C2 | July 07, 2012 | Leave Comment

Q: I just read your answer to a question regarding a homeowners association and a foreclosure. My situation is slightly different because the HOA did actually record their lien first. The house was foreclosed on by the first lender and auctioned off (it went back to the bank).

The HOA accepted my dues post-petition and I intended to pay them until the bank took the house back, but they stopped accepting my dues post-discharge because they said they couldn’t accept payment from me and at the same time pursue the lien against the property.

The property has now gone back to the bank but there’s no money to cover their lien so now they’re back at me again trying not only to get past dues but almost $1,000 in additional fees. If they chose to put a lien on the property can they also pursue me for anything above the dues?

A: First, let me translate for readers who are not students of bankruptcy procedure and/or homeowners associations.

When someone files for bankruptcy, they are said to be “petitioning the court for relief from creditors.” So the actual filed documents are called the “petition” as opposed to something like a “lawsuit” or “motion” in the local courts.

The effective date of any bankruptcy is the date the petition is filed. Anything that happens after that, even while the bankruptcy is ongoing in federal court, is considered, you guessed it, “post-petition.”

Generally, this is how it works.

With few exceptions, all of the bills you owed prior to the filing of the petition disappear. However, any bills you accrue after the filing of the petition are post-petition debts and are not erased by the bankruptcy.

A property owner’s obligation to pay their homeowners association dues is an ongoing obligation.

So let’s say your HOA set the dues at $80 per month and you owed your homeowners association $2,000 in back dues and fees on the date you filed for bankruptcy. In that event, the $2,000 would disappear.

But the month after you filed for bankruptcy you would owe $80 for that month. The $80 is a new debt since it was incurred after the filing of the bankruptcy petition.

The historic method for homeowners associations to collect overdue dues is to put a lien on the property. However, in our now not-so-new real estate market, most houses are upside-down and the HOA’s lien isn’t worth anything.

So, as an alternative, the law lets them sue the property owner personally.

The property owner is obligated to pay the monthly dues up until the date they no longer own the property.

For you, that means you owe your monthly dues from the date you filed for bankruptcy protection until the date the first mortgage holder foreclosed.

The HOA was technically correct in telling you they didn’t want to accept payments or sue until they had enforced their lien. But it was a dumb move on their part.

It would have been easy for them to determine that the property was worth less than the first mortgage. They should have simply sued for the money owed and skipped the whole lien-thing.

The bottom line is that you owe the HOA dues from the day after you filed your bankruptcy petition until the day the bank actually foreclosed.

However, it’s probably worth placing a call to your bankruptcy attorney. It may be possible to reopen the bankruptcy for the purpose of putting in these debts.

On the other hand, it may not be worth the cost and effort depending upon how much the HOA wants, and they may be willing to settle for less if you negotiate. You’d likely be better off discussing a payment plan with the HOA’s management than reopening the bankruptcy.

Tim Jones is a real estate attorney in Fairfield. If you have any real estate questions you would like answered in this column you can contact him at SolanoScene@TJones-Law.com.

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Solano unemployment inches downward

By Barry Eberling | From Page: A1, 1 Comment

 
Transplant recipients talk about their best gifts

By Amy Maginnis-Honey | From Page: A1 | Gallery

 
Police release name of woman found dead in Fairfield canal

By Ryan McCarthy | From Page: A3 | Gallery

 
Spering, Bertani spar over fighting crime

By Ryan McCarthy | From Page: A3, 15 Comments | Gallery

 
Fairfield council candidates weigh in on crime

By Ryan McCarthy | From Page: A3, 2 Comments | Gallery

 
 
Five homes featured on Symphony Home Tour

By Amy Maginnis-Honey | From Page: A4

Congregation invites public to Easter music, message

By Amy Maginnis-Honey | From Page: A4

 
 
Local woman helps spread Easter joy

By Amy Maginnis-Honey | From Page: B12 | Gallery

Weather for April 19, 2014

By Daily Republic | From Page: B13

 
.

US / World

California farmers to get more water

By The Associated Press | From Page: A1

 
Teen sentenced in Oakland toddler’s killing

By The Associated Press | From Page: A4

More Latino than white students admitted to UC

By The Associated Press | From Page: A4, 2 Comments

 
PG&E to be arraigned in fatal pipeline blast

By The Associated Press | From Page: A5

Mom and son who died in San Francisco fire ID’d

By The Associated Press | From Page: A5

 
3 alleged gang members convicted of murder

By The Associated Press | From Page: A5

Health care site flagged in Heartbleed review

By The Associated Press | From Page: A5

 
From Clinton to Obama, many parallels

By The Associated Press | From Page: A5, 1 Comment

Study: Half of jailed NYC youths have brain injury

By The Associated Press | From Page: A5

 
Easter on 4/20, pot holy day; pastors reach out

By The Associated Press | From Page: A8, 2 Comments

Colorado deaths stoke worries about pot edibles

By The Associated Press | From Page: A8

 
NASA’s moon-orbiting robot crashes down as planned

By The Associated Press | From Page: A8

Atheist national conference aims at Mormon church

By The Associated Press | From Page: A8, 1 Comment

 
White House updating online privacy policy

By The Associated Press | From Page: A9

SpaceX making Easter delivery of station supplies

By The Associated Press | From Page: A9

 
Sudden movement raises alarm in Wyoming slide area

By The Associated Press | From Page: A9

Some countries get Obama, but want his wife, too

By The Associated Press | From Page: A9, 1 Comment

 
Man who avoided prison is overwhelmed by support

By The Associated Press | From Page: A9

Teen suspended for asking Miss America to prom

By The Associated Press | From Page: A9, 1 Comment

 
In Egypt, a corruption watchdog hit by backlash

By The Associated Press | From Page: A12

Military scales down, modifies Guam buildup plan

By The Associated Press | From Page: A13

 
Captain of sunken SKorean ferry arrested

By The Associated Press | From Page: A13

Avalanche sweeps down Everest, killing at least 12

By The Associated Press | From Page: A13

 
Diplomacy doesn’t move insurgents in Ukraine

By The Associated Press | From Page: A14

Magnitude-7.2 earthquake shakes Mexican capital

By The Associated Press | From Page: A14

 
57-nation OSCE plays key Ukraine monitoring role

By The Associated Press | From Page: A14

Ukraine crisis: The turning points

By The Associated Press | From Page: A14

 
.

Opinion

Cheers, jeers for the week of April 13-19, 2014

By Daily Republic | From Page: A11

 
Editorial Cartoons for April 19, 2014

By Daily Republic Syndicated Content | From Page: A11

 
Here we go again in Sacramento

By Letter to the Editor | From Page: A11, 7 Comments

 
.

Living

Today in History for April 19, 2014

By The Associated Press | From Page: A2

 
Community Calendar: April 19, 2014

By Susan Hiland | From Page: A2

Seniors, it’s never too late to do something about your health

By Kathy Mitchell and Marcy Sugar | From Page: B7

 
Horoscopes for April 19, 2014

By Holiday Mathis | From Page: B7

.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: B10

 
Prince reaches agreement with music label

By The Associated Press | From Page: B14

‘The Boondocks’ back for final ‘offensive’ season

By The Associated Press | From Page: B14

 
A nutty finale for ‘Scandal,’ TV’s craziest show

By The Associated Press | From Page: B14

Stratocaster still a favorite at 60

By The Associated Press | From Page: B14

 
.

Sports

Hertl has impressive playoff debut for Sharks

By The Associated Press | From Page: B1

 
Warriors and Clippers take dislike to playoffs

By The Associated Press | From Page: B1

Big innings lift Mustangs over Indians

By Paul Farmer | From Page: B1 | Gallery

 
Ross, Padres beat Cain and Giants 2-1

By The Associated Press | From Page: B1 | Gallery

A’s come out swinging to beat Astros 11-3

By The Associated Press | From Page: B1

 
Warriors to start O’Neal for Bogut vs. Clippers

By The Associated Press | From Page: B1

Avalanche sweeps down Everest, killing at least 12

By The Associated Press | From Page: B2

 
Mets trade 1B Ike Davis to Pirates

By The Associated Press | From Page: B2

TNT’s Sager to miss NBA playoffs due to leukemia

By The Associated Press | From Page: B2

 
Nadal ousted by Ferrer in Monte Carlo quarters

By The Associated Press | From Page: B2 | Gallery

A’s lefty reliever Doolittle gets 5-year deal

By The Associated Press | From Page: B2, 1 Comment | Gallery

 
’40-and-up club’: Ageless Hopkins after more belts

By The Associated Press | From Page: B2

Jimenez shoots 65 to lead Greater Gwinnett field

By The Associated Press | From Page: B2

 
Solano scores in ninth for 2-1 BVC baseball win over Yuba

By Daily Republic staff | From Page: B2

Choi leads rain-delayed RBC Heritage

By The Associated Press | From Page: B2 | Gallery

 
NBA’s Silver wants age limit change, no rush on others

By The Associated Press | From Page: B2

NBA playoffs looking more wide-open than expected

By The Associated Press | From Page: B2

 
Source: Grizzlies’ G Calathes suspended for 20 games

By The Associated Press | From Page: B2

.

Business

5 features an Amazon phone might offer

By The Associated Press | From Page: B10

 
Judge says American can’t end retiree benefits yet

By The Associated Press | From Page: B10

Mazda recalls 109,000 older SUVs for rust problem

By The Associated Press | From Page: B10

 
.

Obituaries

Sealwyn Shirley Brucefield Shepherd Malkiewicz

By Nancy Green | From Page: A4

 
.

Comics

Frank and Ernest

By Daily Republic Syndicated Content | From Page: B6

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: B6

Peanuts

By Daily Republic Syndicated Content | From Page: B6

 
Sally Forth

By Daily Republic Syndicated Content | From Page: B6

For Better or Worse

By Daily Republic Syndicated Content | From Page: B6

 
Beetle Bailey

By Daily Republic Syndicated Content | From Page: B6

Rose is Rose

By Daily Republic Syndicated Content | From Page: B6

 
B.C.

By Daily Republic Syndicated Content | From Page: B6

Baby Blues

By Daily Republic Syndicated Content | From Page: B6

 
Pickles

By Daily Republic Syndicated Content | From Page: B6

Baldo

By Daily Republic Syndicated Content | From Page: B6

 
Blondie

By Daily Republic Syndicated Content | From Page: B6

Dilbert

By Daily Republic Syndicated Content | From Page: B6

 
Wizard of Id

By Daily Republic Syndicated Content | From Page: B6

Zits

By Daily Republic Syndicated Content | From Page: B6

 
Garfield

By Daily Republic Syndicated Content | From Page: B6

Word Sleuth

By Daily Republic Syndicated Content | From Page: B7

 
Sudoku

By Daily Republic Syndicated Content | From Page: B7

Bridge

By Daily Republic Syndicated Content | From Page: B7

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: B7

Crossword

By Daily Republic Syndicated Content | From Page: B7

 
.

Home Seller 04/19/14

Summerwood features 8 new homes in Suisun

By Daily Republic | From Page: HSR2

Real estate transactions for April 19, 2014

By Daily Republic | From Page: HSR3

Average US 30-year mortgage rate falls to 4.27 percent

By The Associated Press | From Page: HSR3