[WSBARP] Homeowner Association Lien

[Rob Wilson-Hoss]

          A "lien" is usually, depending on the governing documents, simply
a notice of a lien. The lien itself is as structured by the documents, and
probably, although not always, created as of the date of the delinquency or
the date of the recordation of the restrictive covenants. The lien that gets
filed is really just a notice in most cases that a lien has already arisen.

 

          So first you have to look at what the governing documents say.
Likely, they make the obligation a personal debt of the owner and a charge
against the property. So if you release the notice of lien, the probability
is that you are going to be found to have released the lien as to the
property, so the sale can go through; you can't re-impose the lien on the
property after the sale for the remainder owing; and you can collect against
the former owner personally, although without the lien and lien foreclosure
leverage. 

 

          All of this matters when you negotiate; if you have a prior lien,
why take less than what is owed? If you don't have a prior lien (the lender
is prior), why are they paying you at all? These are gray areas that
lenders, closers, title companies and associations tend to be unfamiliar
with to differing degrees. 

 

          My clients' liens are prior and when there is a short sale, we
don't discount. We tell them upfront that the best thing they can do is pay
us all right away, or agree to, so I don't spend attorney time and have to
bill the account so it gets bigger. This often really angers the agents, who
are the ones who often are really getting screwed on short sales, but my
client's answer to the question, "should we give them money that they aren't
entitled to for no consideration back?" is usually, nope. Get it all. 

 

          By the way, when you are thinking about statutes of limitations,
you should not get trapped into thinking that the lien has anything to do
with the accrual of the cause of action. The date the debt is delinquent is
often the operative date, not a couple of years later when a notice of lien
is filed. 

 

Rob

 

Robert D. Wilson-Hoss 
Hoss & Wilson-Hoss, LLP 
236 West Birch Street 
Shelton, WA 98584 
360 426-2999

www.hossandwilson-hoss.com
rob at hctc.com

 

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From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Sandra Bates Gay
Sent: Friday, May 01, 2015 8:32 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Homeowner Association Lien

 

If unit is being transferred under a short sale and the HOA accepts less
than total delinquencies in exchange for lien release, can HOA still pursue
owner / seller for deficiency judgment?

 

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records accordingly.  Mail will not be forwarded from my prior address after
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Sandi Gay

SANDRA BATES GAY, P.S.

Attorney at Law

23515 NE Novelty Hill Rd.

Suite B211-397

Redmond, WA  98053-1996

Phone:             (425) 637-3040

Fax:                 (425) 952-0156

E-mail:             sgay at sbglaw-wa.com

 

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