Thinking About Abandoning Your Condo Because of Foreclosure – Think Again!

The economy has hit many people very hard and the fallout is not over. Here is something many condo and townhome owners do not know. If you stop paying your mortgage the balance due on the loan may be forgiven if the bank forecloses. However, a homeowners association assessment debt is not forgiven if the owner walks away and stops paying assessments. HOAs can pursue owners delinquent assessments and all collection costs as a personal debt.

Consider this. If you have decided to stop paying your mortgage (I do not recommend this but it you are), you still need to pay your assessments. Some people “run”. They move away and pay rent somewhere else and figure the problem is someone else’s, and then get a bill for thousands in assessments due from the HOA!

So why not stay in your condo or townhome, and pay the association the assessments that are due until the bank  forecloses. Lenders are delaying foreclosures and it is hurting owners and the associations.

AND – You will be responsible for them anyway!!

Just a thought!

 

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