Question : What's the difference between bank foreclosure and homeowner's association foreclosure?
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.
- asked by In_trouble
All Answers:
Answer #1
Nope they both can since ownership is dependent onpaying both your mortgage and association fees.
- answered by Worldly25
Answer #2
ur sis will find that homeowner associations havein the covenants or bylaws the ability to lienunpaid dues. Any valid lien can be foreclosed on.A mortgage is just another lien that can beforeclosed on. If the lender is foreclosing(mostlikely in 1st position) she does not have to worryabout the association foreclosing. They would haveto pay off the 1st to get title. At this point itis moot because the home will be lost anyways,unless she can get a loan mod.
- answered by Kevin C
Answer #3
She agreed to pay the HOA fees when she bought thecondo. If she doesn't pay, the HOA can go afterher for the money or the condo. They are choosingto go for the condo. The problem for the HOA isthat they will have to pay the mortgage if theyown the condo; and they don't want to pay themortgage. The bank will end up owning it..
- answered by Ed Atun
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