Im not an attorney Mortgage companies, when properties are sold at Foreclosures, pay 6-12 of past dues but consumers are legislated by law to pay all back dues in Florida. Is this a form of discrimination or not? I can’t find any case law where it’s been challenged. It would make a good case for any attorney that’s up to the challenge.
8 thoughts on “When you buy a foreclosure and have to pay all previous HOA dues of previous owner due you Think it's fair?”
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Maybe this all depends on the state. In CA, the Davis-Stirling Act seems to say that an HOA no longer has a right to delinquent assessments after a foreclosure.
http://www.davis-stirling.com/MainIndex/LienPriority/tabid/1418/Default.aspx
No it’s not discrimination. Do you understand what the word means? Doesn’t sound like it.
Somebody has to pay it. Having to pay things like that are part of why you got it so cheap.
Who says it’s legislated by law? Any buyer with an ounce of smarts will include a contingency in his/her purchase offer requiring the seller to pay all outstanding HOA dues PRIOR to closing.
Actually MD just passed this law. AND IT"S ABOUT TIME.
I have always believed the HOA fees are a form of property taxes. The HOA fee pays for items that would be covered under your property taxes, but since they are privately done, the city doesn’t have to do them (road maintenance, grass, lights, etc).
I would like to see the HOA fees be tax deductible like property taxes.
This is a business deal. Do you want the deal or not? It’s that simple. You pay the back dues in exchange for what you hope to be a "good deal". If it is not a better deal for you than "some other deal", then DON’T DO THE DEAL. That’s the deal!
No, it’s not discrimination. How would it be? If the law was repealed, the bank would make you pay it anyway as part of the sale, so it’s a moot point.
When you buy a foreclosure, you also have to pay for all the deferred maintenance of the previous owner – your best bet is to find out as much as possible before making your offer, so you know what other expenses there will be.
Stay away from HOAs. Warning! They are greedy and tyrannical. You will regret it later if you buy! They can force you to pay thoses fees, so don’t buy this foreclosure. There is a reason why it is foreclosed…..the greedy HOAs!!