To Pay or Not to Pay My HOA?

If you are going through foreclosure and considering bankruptcy, paying your HOA dues is probably not on the top of your list of things to pay.  You need to know how your HOA dues are handled before and after your bankruptcy.  When you file bankruptcy the debt owed to the HOA for dues and assessments incurred prior to the date of the bankruptcy will be discharged in the bankruptcy.  However, if the property is still in your name on the date you file bankruptcy, it is likely that you will incur additional charges from the HOA for that period of time after the date your bankruptcy case was filed.  Those HOA fees and assessments incurred post-bankruptcy are debts you will be responsible to pay.  There is a no way to know for sure when the property will actually be transferred out of your name during the process in which the lender exercises its right to sell the property in a trustee sale.  You cannot rely on the home being sold on the date indicated in the Notice of Trustee Sale.  Often the date of the sale is postponed and it may be postponed more than once.

Because you will likely have some HOA debts which will be incurred after you file bankruptcy, it may be wise to remain current on your HOA dues until after your home is sold in  the trustee sale.  If you are maximizing the rent free housing you are able to enjoy, remain in your home for as long as you can and after the home has been sold at the trustee sale, prepare to move on short notice.