HOA Lien after buying Sheriff's Sale / Foreclosure - New Jersey

[Natalie Schanne]

Has anyone bought a condo or town home in New Jersey subject to an outstanding HOA Lien? I am considering buying a sheriff's sale / foreclosure property at the courthouse steps at the foreclosure auction for the underwater mortgage.

1. How much did you end up having to pay to get clear title and HOA dues current?

How much $$ for the HOA? How much for their lawyer/fees? How much for your lawyer/fees? How much time? How much did they claim you originally owe and how much did they settle for?

I've heard 6 months of back dues, which is do-able, but I'm trying to figure out how much in attorney fees and other things will also be required. I called the HOA and their lawyer. The HOA told me the outstanding balance but the lawyer wouldn't tell me anything.

One property I am interested in has $12,000 of back dues (at $200/mo) + attorney fees. 

A lien was filed in the county records in 2012 for $2000. The remainder has not been filed.

I've seen other properties worth `$150k at the auction with $60k of HOA liens. These go back to the bank every time.

Thank you!

[John Baptist]

Reviving another dead thread for future investors:

The above is not correct.  The lien itself is removed.  HOWEVER, the past fees may still be there.  It will depend on the association's bylaws and master deed.

There was a recent case on this and that is how the supreme court ruled.  Just cause the lien is canned doesn't mean the fees don't run with the land!!

I even looked it up for you:  Highland Lakes Country Club & Community Association v. Fanzino, 186 NJ 99 (2006).  Get the bank/lender to pay it first!!!