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Former owners owe debt to association

Q: Freddie Mac foreclosed on a townhome in our community last year. The previous homeowner was several months in arrears in his assessments, and our HOA placed a lien on the property. Since Freddie Mac foreclosed on the home and assumed the title, Freddie Mac has not paid the delinquent dues nor the late fees. Moreover, it has not made any payments for assessments that have accrued since it acquired the property. In a mortgage foreclosure, is the new owner obligated to pay the prior owner’s debts? What about their obligation to pay assessments accruing after taking title to the property?

HOA assessments carry liability in two different ways: The owner of the home is personally obligated to pay the debt, meaning the HOA can file a lawsuit and obtain a personal judgment against the owner (known as an “in personam” action).

Authors: CharlotteObserver.com: Michael Hunter

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