Do we have to pay HOA dues before a deed-in-lieu can be processed?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Do we have to pay HOA dues before a deed-in-lieu can be processed?
My wife and I are in the process of pursuing a deed-in-lieu with the bank on our condo. We just found out yesterday that they won’t process a deed-in-lieu or a Short-Sale because we owe $3,000 in overdue HOA dues. Is this the law or is it something we can push on with them? We don’t have that money, so our only other option is to go ahead and let them foreclose on us. We just need to know if the bank has the right to force payment of HOA dues before they proceed with deed-in-lieu or short ale? We are not in bankruptcy or anything.
Asked on July 19, 2012 under Real Estate Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country, a deed in lieu of foreclosure must be voluntarily accepted by the lender under conditions that the lender requires. In your situation there is $3,000 in overdue HOA dues that the lender does not want to assume if its accepts the deed in lieu of foreclosure that you have written about.
This is why the lender is requiring the $3,000 HOA dues owed by you to be paid as a condition of accepting the deed in lieu of foreclosure from you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.