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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Payment of junior HOA lien after trustee's sale... Posted by ray on January 09, 2004 at 8:08 AM In Reply to: Payment of junior HOA lien after trustee's sale... posted by Ward-CA- on January 09, 2004 at 0:01 AM : : I purchased a condo in Nevada at a trustee sale Dec 18 that was foreclosed on by the first mortgage holder. The condo sold for the minimum opening bid, I was aware of a junior lien by the HOA when I bought it. : : : : My belief was that I would be responsible for no more that 6 months of back dues...I tried to go in and pay it but the HOA said I had to contact the "collection" company they hired to originally collect the debt from the guy that went into forecloser.. : : I called them and was told I had to pay $885 dollars to bring it (HOA) current PLUS $877 to the collection company and 150 in late fees!! : : They won't release the lien unless I pay so I can't sell it! Am I liable to pay the collection agency's fees?? : : THANK YOU!!!!!!!!!!! : ========================== : Ray, : In May of 2000 there was an appellate case here in CA (Thaler vs Household Finance) that determined that the priority of an HOA lien was established by the date it was actually recorded, and not by the date when the controlling CC& R’s were recorded for the particular condo project. : Since that case, it seems that the most successful strategy here in CA is to pay the obdurate, junior HOA lienholder in order to sell the condo and close escrow. : Then after escrow has successfully closed, sue the HOA in small claims court for the money they unlawfully extracted from you! Works here like a charm. : In fact, most HOA’s will refund the payment to you upon you’re filing of the small claims action. They cave in before you have to go to trial. : Hope this helps. Thanks Ward for replying....I checked the paperwork and the HOA filed 2 weeks BEFORE the first mortgage. I really don't mind paying the HOA the 6 months but I DO mind paying the collection compant an equal amount... Should I pay it then sue the collection company or still sue the HOA? Thanks...Ray Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : I purchased a condo in Nevada at a trustee sale Dec 18 that was foreclosed on by the first mortgage holder. The condo sold for the minimum opening bid, I was aware of a junior lien by the HOA when I bought it. : : : : : : My belief was that I would be responsible for no more that 6 months of back dues...I tried to go in and pay it but the HOA said I had to contact the "collection" company they hired to originally collect the debt from the guy that went into forecloser.. : : : I called them and was told I had to pay $885 dollars to bring it (HOA) current PLUS $877 to the collection company and 150 in late fees!! : : : They won't release the lien unless I pay so I can't sell it! Am I liable to pay the collection agency's fees?? : : : THANK YOU!!!!!!!!!!! : : ========================== : : Ray, : : In May of 2000 there was an appellate case here in CA (Thaler vs Household Finance) that determined that the priority of an HOA lien was established by the date it was actually recorded, and not by the date when the controlling CC& R’s were recorded for the particular condo project. : : Since that case, it seems that the most successful strategy here in CA is to pay the obdurate, junior HOA lienholder in order to sell the condo and close escrow. : : Then after escrow has successfully closed, sue the HOA in small claims court for the money they unlawfully extracted from you! Works here like a charm. : : In fact, most HOA’s will refund the payment to you upon you’re filing of the small claims action. They cave in before you have to go to trial. : : Hope this helps. : Thanks Ward for replying....I checked the paperwork and the HOA filed 2 weeks BEFORE the first mortgage. : I really don't mind paying the HOA the 6 months but I DO mind paying the collection compant an equal amount... : Should I pay it then sue the collection company or still sue the HOA? : Thanks...Ray Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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