HOA Lien Suit for Fees and She Never Lived in Home
My question involves collection proceedings in the State of: CA
Hello, I am in need of some clarification on the following.
I have a family member that is being sued by an HOA for violations and fees that accrued. This took place at a home where she was on title and listed on the HOA, but never resided. Her ex-husband lived at the home for approximately 3 years, ending in 2012 and this is when the violations and fees were incurred.
In summer of 2012 the ex-husband vacated the home and the house was sold under foreclosure in 2013. Based on the articles read, I was under the impression that the President Bush in-acted laws of the mid 2000's regarding foreclosure and line repayment/write-off would take affect.
It is my understanding that if the house sold in a foreclosure and the HOA lien was recorded after the mortgage (which it was), they might not be paid. The mortgage loan, when it foreclosed, would be paid first from the proceeds and if there wasn't enough to go around, the HOA wouldn't be paid and their lien would disappear. Like a second mortgage that would not be covered under a foreclosure when the first mortgage required all sale proceeds.
Here is an example: House sells for - $180,000
Mortgage + Foreclosure costs - $200,000
HOA lien - $2000
In the example, only the mortgage would be paid, because there isn't enough money to pay the HOA lien and the HOA lien would be extinguished. This is based on an real-estate Law article that I had read.
Can you tell me if this is still the case or did these laws expire?
Will she be liable for the lien amount even though she did not live there?
Would she have to pay the lien portion in her name and then take the ex-husband to small claims to recoup the funds, being that he technically incurred the fees, violations, and fines and not her?
We ask because she is recently divorced, unemployed with no benefits (she was a stay at home mother no work experience), and barely has enough now to pay the general monthly living expenses.
Thank You
Re: HOA Lien Suit for Fees and She Never Lived in Home
I'm not going to go into long explanations of each question.
Suffice to say: She was on the deed. Doesn't matter if she didn't live there. She owes the HOA.
I suggest she consult an attorney to review her options.
Perhaps a bankruptcy attorney would be a better option.