Q A couple owns a home that is part of a homeowner association and they get behind on their monthly condominium dues. In the meantime, they also get behind on their mortgage and the bank forecloses on the home. The homeowner association is still seeking to collect the association dues from the couple. Is the couple responsible for thepast HOA dues or does the foreclosure extinguish the HOA's dues payments altogether? Who should be responsible for the HOA dues – the former owner (i.e. the couple) or the new buyer?

— Owner in Arrears

A Depending on state statutes, the response could be somewhat different, but in a general sense, the foreclosure terminates the obligation of the homeowner going forward.

This assumes the foreclosure is completeat sale, versus complete at recording of the deed (states differ on this point). From complete foreclosure forward, it is the buyer at the foreclosure auction (or completed sale) who is responsible for the dues.

Regarding the unpaid expenses during the foreclosure process (but before completed sale), from a contractual perspective one could argue the former owners could still be liable for that unpaid amount; however, in most states the lien accrues and all unpaid amounts would be paid either by the mortgagee or the new buyer. In order for the new buyer to get a clean title, the mortgagee would most likely need to pay all past due fees – thereby letting the old owner off the hook.

— David A. Marsocci, Esq.