If you are behind on your Condo Association Dues or Homeowner Association Dues (HOA), you may already know how aggressive associations can be in their efforts to collect. Don’t be a victim of their collection efforts, find the right solution for lasting relief.
Avoid Condo Association or HOA Liens in Michigan
Condominium associations are among the most aggressive creditors. Michigan law entitles the association to collect from the property owner all fees associated with collection, including attorney fees. Generally, the association will be able to get the dues paid, either by the current owner or the foreclosing party. Because the cost of aggressive collection and litigation is a pass through cost to the property owner, the association is quick to enlist the assistance of aggressive counsel to pursue the association dues and HOA liens in Michigan.
Unpaid association dues and the associated collection/attorneys fees can quickly snowball and create a seemingly insurmountable obstacle to keeping a property. It is not uncommon to see total arrearages (which include collection costs) that are more than double or triple the actual past due monthly dues as a result of the exorbitant collection costs. The association can and will use the default as a justification to foreclose on the property.
Read other information regarding condominiums and HOAs:
Chapter 13 Provides Legal Protection and Debt Reduction
Filing for Chapter 13 Bankruptcy provides a mechanism to protect you from collection and foreclosure efforts as well as possibly reduce the amount payable to the association through the lien strip process.
Call on our licensed attorneys today to understand if Chapter 13 protection would benefit you by providing:
- 0% interest repayment for all unsecured debts, including credit card, medical bills and past due utilities;
- Debt reduction by modifying vehicle payment(s), lien stripping, reducing balance on rental properties and unsecured debt elimination at the completion of the 36-60 month program;
- Creditor protection from foreclosure, repossession, collections, judgments or garnishments;
- Credit restoration through improved debt-to-income ratio and consistent timely payments to creditors in the plan. These two factors alone account for 65% of your credit score according to FICO.
Call today to speak with a licensed Chapter 13 attorney about you how this debt consolidation might improve your finances. We offer free same day consultations and legal protection!
Collection on Debt after a Condo Association or HOA Foreclosure
Collection on Mortgage Debt after a Condo Association or HOA Foreclosure
Assuming the association properly names as a defendant all lienholders, the foreclosure extinguishes all liens except for a first mortgage and tax liens (state and federal). As such, they would not have to pay off junior mortgages (i.e. Second mortgages or home equity loans) but do have to pay off first mortgage and tax liens.
Collection on Condo Association or HOA Debt after a Mortgage Foreclosure
Condo dues create a personal liability for a property owner. A property owner can be pursued personally for association dues that accrued up to the point of the mortgage foreclosure and likely through the expiration of the redemption period. Despite a recent Michigan court of appeals case stating that the foreclosing party is responsible for the association dues from foreclosure through redemption date, the reality is that the condo association may still try to pursue collection and/or a judgment for all amounts accrued through expiration of redemption.
Call Acclaim Legal Services Today
Call our firm today at 866-261-8282 to get a free consultation on how to best resolve Condo Association or HOA and other unresolved debts that may be depressing your credit score and interfering with your ability to obtain new credit. Schedule your consultation online for any of our seven Michigan office locations: Detroit, Ann Arbor, Flint, Dearborn, Southfield, Lansing or Warren.