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Can the Bank Collect Past Due HOA Fees After a Foreclosure Judgment?

A foreclosure notice is never an easy document to receive, especially after pouring your heart and soul into creating the home you’ve always wanted. You’ve done everything you could have, but there just isn’t enough money rolling in to keep up with the steep bills and fees that come with owning a home. When a foreclosure notice is received, some may question what happens with their homeowner’s association debt.

Depending on who handles homeowner’s association fees, the foreclosure process can begin in a couple different ways. Fees are dealt with by the individual in jeopardy of losing his or her home to a foreclosure only if he or she is trying to keep the home. Doing so will prevent others from filing for a lien to take the home during the process. During a foreclosure case, it is possible for the homeowner’s association to try to take possession of the home through a lien.

If keeping the home is no longer an option, then the bank will most likely pay the debt acquired from the homeowner’s association. That amount will go towards the Deficiency Judgment after the foreclosure sale of the house. In another case, the homeowner’s association can possess the individual’s property through a lien by filing a suit for foreclosure to the court.