Paying an attorney to get an HOA payoff amount?

Question

I recently purchased a performing first which has an outstanding HOA lien attached.  Upon contacting the attorney for the HOA to find out how much the outstanding lien was, I was told that the attorney charges $150 for this information.  Is this common?  (this is not a super lien state btw)

Wayne Brooks · Answer

@Sandy Uhlmann These quiet ions are always state specific, as most foreclosure issues are.  Here, you wouldn't even get named/served as the mortgagee in an HOA foreclosure.

Matthew Kreitzer · Answer

Depends on your state's priority rules and the nature of the secured interest. If they adopted the UCC in its entirety, and there is a validly perfected lien on the property [big if], it is senior and is not extinguished by foreclosure and carries with the property minus the amount that was redeemed [generally with few exceptions]. Your state may or may not follow the UCC in its entirety, or may even have case law that modifies these rules. First in time isn't the only thing some states consider. I hate to say it, but you should probably either do the legal research on lien priorities or consult attorney.

Sandy Uhlmann · Answer

In this case, I thought it would actually help the HOA out by telling this borrower that they need to pay the HOA because this is also in violation of the mortgage/note and is grounds for foreclosure if not paid.  I guess I don't need the actual amount (especially if they are making me pay for it) They also told me that despite me giving them my assignment, they wouldn't keep me in the loop as far as what is going on.  Not impressed with their attorney.  I guess I will just follow it in Netro.  I assume in the worst cases, even if the HOA forecloses, they would still take the property subject to the first (me)  Is that correct or is there something lurking out there that I am not aware of?

@Joshua AndrewsI would have liked to contact the HOA directly but I couldn't find any phone numbers or contact info other than their attorney's name.  If I could find out how to contact them directly, that would have been my preferred contact.

Wayne Brooks · Answer

It depends.  Many times when there are outstanding past debts, the attorney will certainly charge for a binding estoppel letter, but not normally for ball park outstanding balances.

Joshua Andrews · Answer

To follow up on your post, I re-read and see you did call them. Typically I get the HOA manager, not the attorney. An attorney will try and charge for anything they can. Go figure.

Josh

Joshua Andrews · Answer

I would just call the HOA yourself. I have found they are not difficult to get a verbal payoff from like a bank may be. I just did that today when performing due diligence on a loan and it's worth knowing, especially in a super lien state.

Josh