Expert: Dick Dennis - 11/17/2009

Question
6 years ago I qualified for and bought a condo for $138k, after 6 years of fees and assessments of $12+k, I have been given another assessment for $61k (delayed maintenance %26 renovations). I am trying to get a deed-in-lieu or take a regular foreclosure, but the HOA forced in a non-judicial foreclosure clause a couple years ago. How can I get out of this without them selling my unit for the fees and fines and leaving me still paying the mortgage?  

Answer
As best as I can understand your plight, Dore, if it was me, I would just stop making payments on my mortgage and put away in a savings account your monthly mortgage payment. Then I would go out and find another residence BEFORE your credit starts to get marred.

The foreclosure on the mortgage will supersede the HOA foreclosure, providing the notice of default is recorded BEFORE the HOA's. You obviously bought into a snake pit with that HOA that apparently has obligated itself for a whole slew of repairs and maintenance.

You could also find yourself an attorney who specializes in condo HOAs and get him/her to help you in this matter. If nothing else he/she could at least explain this whole mess to you before you go out to find another home. The prices are way down and you should be able to find a good deal somewhere. I do wish you well.

Dick Dennis