If a developer files bankruptcy and the bank owns all of the unsold lots, canthe exsiting homeownerstake over HOA management?
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If a developer files bankruptcy and the bank owns all of the unsold lots, canthe exsiting homeownerstake over HOA management?
What are our options – we do not have enough said homes sold but since there is no developer, can the neighborhood take over the HOA? The existing HOA management comapany is still getting paid ($20,000) and homeowners have no common area lawn care and all of the services to the pool and clubhouse are getting cut off. What can we do to take over the HOA?
Asked on August 29, 2010 under Real Estate Law, Georgia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I would seek to find an attorney in your area that deals in this type of law specifically. It can be very difficult to determine in a general setting. You will need to bring with you the management agreement as well to determine what their rights and responsibilities are under the circumstances. If the development went bankrupt then I would be concerned as to the formation of the prior HOA under the law and a new HOA for your benefit and the the requirements thereof. The bank also may have some responsibility here so you need to have the attorney look in to that issue. This is not something that you can do on your own. Good luck.
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