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Subject: Foreclosed, damaged condominium HOA inactive and dissolved
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Author Messages
JeanneH2
(Tennessee)

Posts:2


09/02/2019 1:58 PM  
4 Unit condominium was bought in foreclosure with a damaged roof, it also had a inactive and dissolved HOA at the time, lived here 13 years without a HOA ... are we bound to a HOA if the other 3 reactivate the old inactive dissolved HOA?
MelissaP1
(Alabama)

Posts:8603


09/02/2019 2:26 PM  
Go to your local courthouse to find a copy of the CC&R's still exist. You may find the Articles of Incorporation online at the state level. That will tell you if there are still recorded HOA.

Former HOA President
SteveM9
(Massachusetts)

Posts:3362


09/03/2019 5:23 AM  
Although I'm speculating..... its very likely a condo has a requirement for an HOA. So if people start it up again, YES, you will be required to pay in, and possibly back dues.
SteveM9
(Massachusetts)

Posts:3362


09/03/2019 5:24 AM  
Just because no one was running it doesn't mean you dont owe back dues.
CathyA3
(Ohio)

Posts:461


09/03/2019 5:48 AM  
How do you know that the HOA was dissolved? Was it done legally, or did members just decide to ignore it? There also may be covenants and restrictions attached to the land that are still in effect - ignoring them doesn't make them go away.

Presumably this stuff was sorted out during foreclosure and post foreclosure sale, but with real estate what you don't know can come back to bite you. I recommend getting competent legal advice.
SteveM9
(Massachusetts)

Posts:3362


09/03/2019 6:14 AM  
Presumably this stuff was sorted out during foreclosure and post foreclosure sale, but with real estate what you don't know can come back to bite you.


In a typical foreclose sale everything is ignored and the bank sells it, as is. Since he is asking this question now...... its presumed nothing was "sorted out"
JohnC46
(South Carolina)

Posts:8733


09/03/2019 9:34 AM  
Posted By CathyA3 on 09/03/2019 5:48 AM
How do you know that the HOA was dissolved? Was it done legally, or did members just decide to ignore it? There also may be covenants and restrictions attached to the land that are still in effect - ignoring them doesn't make them go away.

Presumably this stuff was sorted out during foreclosure and post foreclosure sale, but with real estate what you don't know can come back to bite you. I recommend getting competent legal advice.




I agree. My initial blush is there is an association but it has been ignored.
JeanneH2
(Tennessee)

Posts:2


09/03/2019 9:59 AM  
We know according to the State of TN the HOA is inactive and Dissolved in 2000. We bought in 2005 signed no HOA association. It was a building bought out of foreclosure with a damaged roof. Does the foreclosure and damaged roof cancel the HOA as we understand when there is a foreclosure due to damage exceeding dues the HOA is terminated.
CathyA3
(Ohio)

Posts:461


09/03/2019 10:14 AM  
Posted By JeanneH2 on 09/03/2019 9:59 AM
We know according to the State of TN the HOA is inactive and Dissolved in 2000. We bought in 2005 signed no HOA association. It was a building bought out of foreclosure with a damaged roof. Does the foreclosure and damaged roof cancel the HOA as we understand when there is a foreclosure due to damage exceeding dues the HOA is terminated.




I've never heard of damage "terminating" the HOA. As I said earlier, I recommend getting competent legal advice. Most of us here are not lawyers, and your situation is more complicated than things we normally deal with.
RichardP13


Posts:0


09/03/2019 10:26 AM  
I would think at "first blush", that, if the HOA was legally dissolved, then to re-activate, would take the approval of 100% of the units.
NpS
(Pennsylvania)

Posts:3762


09/03/2019 10:40 AM  
Posted By JeanneH2 on 09/03/2019 9:59 AM
We know according to the State of TN the HOA is inactive and Dissolved in 2000. We bought in 2005 signed no HOA association. It was a building bought out of foreclosure with a damaged roof. Does the foreclosure and damaged roof cancel the HOA as we understand when there is a foreclosure due to damage exceeding dues the HOA is terminated.


If the dissolution you're talking about occurred because someone didn't make a required filing with the Secretary of State, that's not enough. Failure to file is easily remedied. Your HOA may have lost its corporate status, but that wouldn't have eliminated your HOA.

A Dissolution of an HOA is typically filed at the Recorder of Deeds office - Where the CC&Rs should have been filed originally.

Sikubali jukumu. Read all posts at your own risk.
JeffT2
(Iowa)

Posts:493


09/03/2019 10:58 AM  
This is not the same as an HOA.

The creation of a condominium creates a special form of ownership, an association and many other provisions of ownership, including obligations. The condominium and owners association cannot go away due to foreclosure of the units or damaged roof. It also does not go away with dissolution of the corporation, as Nps noted.

You still have a condominium, a condominium owners association (which is not the same as a HOA), unless you go through a process called "termination," which would divide up the land and other assets among the unit owners, and create new divided up properties.
MelissaP1
(Alabama)

Posts:8603


09/03/2019 3:48 PM  
May I also note that you don't "Sign" anything to be in a HOA. Your in a HOA because CC&R's are on file at the local county courthouse. Your HOA may or may not be incorporated anymore with the state. This does NOT dissolve it's existence.A

Foreclosure has little to do with the HOA except if the HOA did the foreclosing. It may be because it's a foreclosure no one provided the HOA's documentation to the buyers. Which many states require the seller to provide. However, in cases of a bank foreclosure they may not provide the documents. The documents are PUBLIC for the CC&R's and Articles of Incorporation. So not necessarily a requirement for anyone to provide them.

A HOA works like a club for homeowners. That club is funded by it's owners. It also has it's own rules. So when your talking about forming a "HOA" it's basically getting you and your neighbors into agreement on how to run the place. It's NOT a "They or Them" thing.

Former HOA President
SteveM9
(Massachusetts)

Posts:3362


09/04/2019 5:47 AM  
A more immediate issue to me would be insurance.

Now every HOA/condo is different, but typically the condo association owns the building and the homeowner owns the condo, walls in.

So what kind of insurance do you have on the place now? If you have condo insurance, and the place burned down tomorrow, and there was no one paying insurance on the building, your entire investment will be lost. So thats something you need to figure out.... who if anyone is paying insurance on the buildings. And if there is someone paying, they are going to know that you are not pitching in and they will be calculating fees for your units. They maybe already starting foreclosure on your units.

Other things that may apply to your condo, who is paying sewer, water, etc.

You dont sign an agreement to join a condo/hoa, you are simply a member the day you buy it. Similarly, you dont sign an agreement to pay taxes in a town. You simply owe them because you own property in that town.
RichardP13


Posts:0


09/04/2019 8:10 AM  
Posted By SteveM9 on 09/04/2019 5:47 AM
Now every HOA/condo is different, but typically the condo association owns the building and the homeowner owns the condo, walls in.



Have you ever seen a document that shows an association owning any property like the buildings and listed anywhere as an asset or liability?
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