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KellyW (Georgia)
Posts: 7
Posted:
I am a board member for a 100+ condo HOA in ATL. Last year, a resident turned his unit over to the bank for foreclosure and left in the middle of the night owing the HOA over $8,000 in fees. This former resident is gainfully employed as a lounge singer on a well known cruise ship. Despite constant prompting by the board and property manager, the prior HOA attorney did not pursue collection of the debt prior to the debtor's departure. For several reasons, we replaced our HOA law firm. Our new HOA attorneys have located the debtor in CA. But it seems our new attorney (and his boss) have turned over the collection of the debt to the board of directors and the HOA property manager. The attorney has provided the names of 4 CA attorneys for us to contact so as to serve the debtor in order for us to begin the process of collecting this debt. Is this the normal practice of Atlanta HOA attorneys to collect out of state debts or is it normal practice to turn it over to the property manager and the board of directors? We would appreciate any information on this matter. Thank you.
RogerB (Colorado)
Posts: 5,067
Posted:
Kelly, attorneys can on work in states in which they are licensed. Recently an HOA attorney sent a bankrupcy case to me, the property manager, to handle since they were not allowed to file in NE.
HaroldS (Arizona)
Posts: 906
Posted:
Lordy, why and who allowed this fellow to accumulate $8,000 in debt? Is this unpaid assessments or fines or interest? - you just say "fees." Did you file liens? Liens are collectible against the property. Of course, if he wasn't paying you, he obviously wasn't paying the mortgage - or probably other creditors as well.
A cruise singer might be gainfully employed, but just barely - they are literally singing for their bed and board and some spending money. Cruise ship entertainers aren't exactly a Las Vegas headliner. I doubt there would be enough that you'd legally be allowed to garnish. If forced, he would probably file bankruptcy, if he already hasn't. Harold
SusanW1 (Michigan)
Posts: 5,202
Posted:
Make sure the bank knows about this outstanding debt. They've got the home - and all the liabilities that go with it.

Forget going after this guy/gal - "singing for your supper" has a whole new meaning for him/her now. No one is going to make any money, except the lawyers.

HaroldS (Arizona)
Posts: 906
Posted:
You can be sure the bank will know if there are liens, but the bank lien is first in line and if there is no money left, too bad for anyone else. The bank is only concerned about recovering their loan, not anyone else's. The bank's only responsibility is assessments from the date they take back possession. Any fines, interest, etc not covered by a lien is not the bank's responsibility. Why would it be? Harold
DonnaS (Tennessee)
Posts: 5,671
Posted:

That's right Harold,

Our assoc. placed a lien on a slacker for a good sum of money. We were 6th in line, after his mortgage holder, car loan, huge credit cards, etc. We got 22 cents for every dollar that he owed and consider ourselves lucky that he even had any assets worth going after. Plus he owed legal fees for us and the line in front of us so basically we all lost.
CarolineS1 (Georgia)
Posts: 1
Posted:
Kelly, I live in Atlanta also. We had an owner who lives in DC. We filed in GA and had them served in DC no problem. You may need to select a new attorney's firm that knows what it's doing.
GloriaM (North Carolina)
Posts: 829
Posted:
Kelly:

It sounds as if what he did was what is called a short sale, returning the condo back to the bank in lieu of foreclosure. Was there a lien placed on the unit before the sale?

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