How Your Homeowner’s Association Can Ruin Your Short Sale
June 8, 2010 by Kristin LaVanway · 1 Comment
…And Even If You Foreclose, They Can Still Come After You…
If you owe your Homeowner’s Association back dues, your short sale could be in grave danger. If you are behind in your HOA dues, your HOA can file a lien against your property which will prevent the sale of your property until the account is in good standing. Homeowner’s Associations are really struggling these days and are digging in on these delinquent accounts. Because the HOA’s are less likely these days to settle in the hopes of getting someone in the property who will keep up the account, you may be in real trouble if you don’t keep that HOA account in good standing.
Lenders who are approving the short sales are also less likely these days to contribute to the delinquent account, so you may be in real trouble if you can’t figure out how to pay off that delinquent account.
But the news gets worse…even if you decide to forego the short sale and let you house go into foreclosure the HOA has the option of treating the delinquent account like a personal debt. They can choose to go after a judgement against you in which case you are still on the hook even if you no longer own your house.
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I am a Realtor in Gilbert, AZ, working with clients throughout the Phoenix Metro area. I am lucky to love what I do and appreciate the difference I can make in people's lives.
In a previous life, I was a rocket scientist - really! - but decided to step away from corporate America to be a Mom to my four boys. Found it hard to do bake sales, so I ran a small independent programming business instead.
Flash forward...I am now a single mom and I face many, many challenges everyday. I am living through the hardships that many are facing in this economy. These experiences have motivated me to help other people in my shoes.
I have teamed up with Dean Ouellette to form the East Valley Team - the best darn team in the Valley. Check out our site at http://www.EastValleyTeam.com. I spend way too much time on YouTube - check ou tmy channel at http://www.youtube.com/klavanway
You are correct. I am on an association board and we are filing for and have won garnishment of wages against owners who are delinquent on their accounts. We are starting to see positive results to our bottom line and it has given other owners a heads up that they can’t just walk and think they are off the hook.