What happens if I continue not paying my Home Owners Associations
fees? Can I still live in the house?
I haven’t paid the HOA in over a year now. They don’t do anything at all. It is just a big expense for me to keep paying them $ 100 a month for nothing. Anyways I
received a letter today saying that I owe them $ 2600 and that they referred my account to the law firm and that I have until August 26 to pay in full or pay over a 3
month period. I cannot do either one as I don’t have money to keep paying these guys. I just finished a loan modification process with my mortgage company 4 month
ago and I am now comfortable with my mortgage payments. I can’t afford the HOA payments but I want to stay in this house. Anyways knowing that the house is now
worth only $ 176,000 as compared to $ 395,000 when I bought it in 2007, am I safe from the HOA? I mean even if they put a lien on the house, how are they gonna
collect their money. I don’t even know if they could just foreclose on me after they put a lien on the house, but why would they do that. They won’t get a dime out of
this right. How does this process work exactly and can I just continue living in my house without paying the HOA. I don’t care about my credit. My credit is terrible as
it is and I have stopped paying my credit cards well over a year now and I did receive judgments against me from these credit cards but it doesn’t matter because they
can’t garnish my wages since I am self employed and I don’t have any money in the bank. So going back to the HOA situation, I am in Arizona, what is the law
regarding the HOA here in this state? Even if they put a lien on the house, knowing that the house has gone down by $ 200k, what can the HOA do? Please give me all
the details. I really need help and I want to stay in my home. Thanks
Answer by GD You assumed an obligation to pay HOA fees when you purchased the home. By not paying the HOA fees, you are reducing the pool of funds available
to pay the expenses of the community, resulting in higher assessments to be paid by your neighbors. The HOA documents you signed at closing likely granted the HOA
the right to place a lien (and foreclose) on the house for unpaid dues. Here’s where your plan to simply stop paying goes awry……the HOA can take title to the house,
and collect rents to fund outstanding assessments. Senior secured creditors frequently approve of this tactic by the HOA, particularly when the mortgagor is insolvent.
The HOA can also sue you for any fines and penalties assessed but not paid. If successful, the HOA can obtain a judgment lien on both your real and personal
property (car, bank accounts, stocks, etc.)
Unless you file for bankruptcy, unlikely you’ll escape your obligations.
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