Have you recently been contacted by your HOA and been told that your home is in danger of foreclosure — or perhaps even had proceedings started against you? If you belong to a homeowner’s association or HOA in Arizona, you probably pay dues and assessments to it as part of the requirement of living there. But if you fall behind on necessary payments to your HOA, you could actually have your house foreclosed on by the HOA — even if your mortgage is current. Fortunately, there is a way to stop the HOA foreclosure process, and your Phoenix bankruptcy lawyers at Lerner and Rowe Law Group can help.
Phoenix HOAs & Foreclosures
It’s a common misconception that if your mortgage payments are current, you’re safe, but that’s not true. You could absolutely lose your house to foreclosure because of failure to pay HOA monies alone. In fact, they are responsible for a recent surge in foreclosures in the Phoenix area.
All it takes is a year’s worth of missed payments or a debt of $1200 in assessments and dues for your property to be subject to foreclosure.
How Accurate are HOA Records?
HOA records can be inaccurate. Homeowners often find that the amounts listed as “owed” in court filings and HOA records don’t match – meaning that it’s almost impossible to find out what they actually owe. These inaccuracies also make it difficult for homeowners to make their payments current.
Increase of Arizona Home Foreclosure
The more recent rebound in home values has also contributed to an increase in HOA-related foreclosures. The drop in home values meant many homeowners owed more on their homes than they were worth. Because of that, investors were hesitant to buy houses. HOAs often decided to let debts simply sit as a result.
But a rebound in home prices means that HOAs are once again pursuing debt repayments. Oftentimes they tack on additional interest and attorney fees prior to threatening foreclosure if homeowners don’t pay up.
Fortunately, there is help. It’s important for you to understand that you don’t have to put up with losing your home to HOA-related foreclosure. Our Phoenix bankruptcy lawyers can help you file for Chapter 13 bankruptcy so that you can stop foreclosure proceedings and keep your home, in most cases.
How Bankruptcy Can Help You “Stand up To” Your HOA
Chapter 13 helps you in more ways than one:
- It stops foreclosure proceedings. Once your Phoenix bankruptcy lawyers file your bankruptcy papers, there will be an automatic stay, or postponement, of the foreclosure. No matter how much you owe, the HOA will NOT be able to proceed.
- You may be able to “discharge” pre-bankruptcy unpaid dues. If you file for Chapter 13 bankruptcy, sometimes the court will grant you what’s called a “discharge” for your unpaid dues and perhaps assessments. The court may “forgive” part or all of the amount you owe, just as it will with other unsecured debts. You are still responsible for repayment of any debts as part of the final agreement.
Don’t Wait – Let Phoenix Bankruptcy Lawyers Help Save Your Home From Foreclosure Now!
With HOA’s threatening a foreclosure, time is of the essence. An Arizona Chapter 13 bankruptcy can only help you save your home if it is filed before foreclosure proceedings are complete. Contact our highly skilled Phoenix bankruptcy lawyers directly at 602-667-7777, 24 hours a day, seven days a week, or access our LiveChat now!