Hello!
I have a scenario. I have a short sale listing. The home has been discharged in Chapter 7 bankruptcy as has the HOA dues. We got BofA 's approval. We got the 2nd lienholder approval. BofA's approval allowed for $1900 in HOA dues. Everytime in speaking with the HOA, this was the amount that was owed. The $1900 is the Post-Bankruptcy Petition amount. The Pre-Bankruptcy Petition amount was discharged. When title ordered the pay off demand from the collection agency that the HOA, they are now demanding the entire amount - the discharged amount and the post bankruptcy amount (the 1900 that we were aware of and was approved). Is it legal for them to demand the discharged amount from the seller that has been discharged in bankruptcy?
Any advice is greatly appreciated!
Stephanie
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Stephanie. The seller needs to seek legal advice in this matter.
I happen to be dealing with a similar issue right now. In fact the HOA that was discharged in BK is foreclosing on the property in 2 weeks if I can't get the deal closed in time.
My understanding is that the HOA cannot go after the debtor personally. However, they can go after the property.
Get an attorney involved asap.
Have the BK attorney write them a nice letter....
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