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Posted: Tue Aug 11, 2009 4:28 pm Post subject: HOA liens and subordination

Hi everybody, I represent a small HOA that placed a lien on a property that owed several months worth of late fees. We placed the lien on February 09. On July we were contacted by a lawyer saying that his client bought the property on foreclosure and that he's not liable for any money on the lien before he took possession. Basically he wanted to pay whatever he owed from July on.

He stated that, as per our HOA declarations, our lien is subordinate to the mortgage lien.

Can somebody please tell me whether that means they're right?

Thanks in advanced.

Posted: Tue Aug 11, 2009 4:36 pm Post subject:

I forgot to mention that I'm in Texas.

smithsussane · Posted: Tue Aug 11, 2009 7:49 pm Post subject:

Hi Guest!

Welcome to forums!

The new owner of the property should have asked the earlier owner of the property to clear off the liens before the sale. As the new owner has not done it, he could be held responsible for the lien. Though the lien is subordinate to the first mortgage, it needs to be paid off.

Feel free to ask if you've further queries.

Sussane

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HOA liens and subordination