[WSBARP] What is the best possible outcome in this situation? (HOA debt)

[Craig Blackmon]

Thank you, both. And yes, I considered this outcome and put it into the
"ongoing catastrophe" category. Ah, life. Onward. If anyone derives a
solution to this puzzle, please let me know. Thanks all.

Enjoy the Holiday week!

Craig
Craig Blackmon, Attorney at Law
Seattle Real Estate Lawyer <http://www.seattlepropertylawyer.com/>
92 Lenora St. (The Makers Space, a shared work environment)
Seattle WA 98121
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On Thu, Nov 21, 2019 at 5:35 PM Inge Fordham <inge at fordhamlegal.com> wrote:

> Something to be aware of if the clients opt for BK – there is often some
> lag time between the BK discharge and the bank foreclosing on the property
> and taking ownership.  The HOA can go after the clients for all dues
> assessed against the unit following the BK discharge for as long as they
> remain legal owners of the unit.  If the bank will accept a deed in lieu,
> the clients may be able to control the timeline (as opposed to just waiting
> for the bank to take ownership).  Many owners do not realize this and end
> up with a judgment against them (albeit for less than it would have been
> but for the BK) despite having filed for BK.
>
>
>
>
>
> [image:
> uc%3fexport=download&id=1W3rEcChy0_E0cCfV5up02mkhwnL6eWIs&revid=0B4P5JoIHdbFaR29EbHlRWHFseFV5STZpSUVGeUNPWldkVDFVPQ]
>
> *Inge A. Fordham | Attorney*
>
> Fordham Law, PLLC
>
> 3218 Sixth Avenue | Tacoma, WA 98406
>
> Office: (253) 348-2657 | Mobile: (206) 778-3131
>
>
>
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>
> *From: *<wsbarp-bounces at lists.wsbarppt.com> on behalf of Ron Housh <
> ron at housh.org>
> *Reply-To: *WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Date: *Thursday, November 21, 2019 at 4:24 PM
> *To: *WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject: *Re: [WSBARP] What is the best possible outcome in this
> situation? (HOA debt)
>
>
>
> Bankruptcy?
>
> Sent from my iPhone
>
>
> On Nov 21, 2019, at 3:44 PM, Craig Blackmon <
> craig at lawofficeofcraigblackmon.com> wrote:
>
> Listmates, I have a very unfortunate case concerning a debt <$10k. In
> other words, it doesn't merit big legal fees (and the client doesn't have
> the money in the first place). So I am turning to this awesome community
> for some good insight on a possible path forward. Oh, and set me straight
> on my analysis, as needed. Thanks in advance.
>
>
>
> Facts: Home is part of an HOA. In 2006, owner/client defaults on mortgage
> and HOA dues. 2009 lienholder initiates foreclosure; tenants vacate; lender
> changes locks to secure property. Lienholder then discontinues sale. Owners
> do not receive or understand the Discontinuance, and they believe they no
> longer own the home (as evidenced by the changed locks). They move on with
> their lives. Lienholder turns off utilities and eventually begins payment
> of property taxes.
>
>
>
> Today, nine years later, HOA files suit. Surprise! Client still owns the
> place (and is thus liable for HOA dues). Home has an FMV of $285k. However,
> $30k is needed to get home in market/rental condition. Lienholder asserts
> $410k owed on lien, claiming all principal and interest due since default.
> In reality, though, per *Cedar West Owners Assoc
> <https://links.casemakerlegal.com/docid/2325009?bookname=public_url>*.,
> the lienholder is owed $275k (the last six years of missed payments plus
> remaining principal).
>
>
>
> HOA has no interest in taking ownership of unit and wants to be paid in
> full for dues owed to date (and those in the future, of course). Client
> obviously wants to resolve HOA debt forever -- past due and future amounts
> -- and finally be done with the millstone hanging from their necks.
>
>
>
> Anyone see a happy ending here for my clients? Or really any ending, other
> than ongoing catastrophe? If you do, I am all ears. Thanks for taking the
> time to read this post!
>
>
>
> Craig
>
>
>
>
>
> Craig Blackmon, Attorney at Law
>
> Seattle Real Estate Lawyer <http://www.seattlepropertylawyer.com/>
>
> 92 Lenora St. (The Makers Space, a shared work environment)
>
> Seattle WA 98121
>
> Office/Cell: (206) 369-5949   Fax: (206) 770-7328
>
> @LawyerBroker <https://twitter.com/LawyerBroker>
>
> How to Buy Without an Agent
> <http://www.seattlepropertylawyer.com/blog?category=Buy+without+an+Agent>
>  | How to Sell FSBO
> <http://www.seattlepropertylawyer.com/blog?category=Sell+FSBO> | RE
> Glossary
> <http://www.seattlepropertylawyer.com/blog?category=Real+Estate+Glossary>
>
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