HOMEOWNER'S ASSOCIATION

Homeowner's Association

Abstract

In this paper, we would be discussing the homeowners' association in regards to the concept of bankruptcy. Often, we see people reporting for bankcruptcy. As Homeowners' association is responsible for the community they hold and they are responsible to provide the services to the community rather than the government, they have a certain responsibility. Thus, in this paper we would be discussing the impact of filing a bankruptcy when being governed under homeowners' association.Thesis Statement

There is a strong association between the activities of the Homeowners' Association and corrupt elements in modern society.

Outline

The research would be on the impact of bankruptcy on the owner of the house whose governed under the Houseowners' Associations. Every homeowners association (HOA) collects assessments to fund its operations, such as common area maintenance, payment of homeowners insurance premiums, and other functions that an HOA typically performs. HOA assessments are often referred to as HOA dues. They are also referred to as HOA fees. In my opinion, Houseowners' association is a sham, as the owners of it are not held accountable. The directors of it spend the money without being held accountable, plus if a person gets bankcrupt, there is no support program from them, instead they can't wait to get their hands on the money, or even the home. Even if a person wants to sell the home on urgent basis, the association will create hurdles for the person. The rules of them keeps changing and the opinion of the community gets unheard.

When you don't pay your HOA dues, your HOA can sue you, get a judgment against you, and garnish your wages through a wage garnishment. In most cases, your HOA will first file a lien against your home or condo and threaten foreclosure. If your property does not have any equity, your HOA will not foreclosure. Instead, your HOA will sue you. There are a lot of people facing foreclosure actions on condominiums or their homes by their homeowner association (HOA). When people start falling behind on their payments, the many hundreds of dollars charged each month by HOAs can be increasingly difficult to pay. If you are one of those people and are wondering how bankruptcy would affect those dues, it is important to understand the special rules relating to home owner association dues, fees and assessments.

If you fall behind on your HOA dues, it is likely that you are also behind on your mortgage payments. The two seem to go hand in hand. Let's look at two scenarios. First, what if you want to keep your home. Second, what if you don't.

What happens if you want to keep your home, but cannot afford to get caught up on both the HOA dues and the mortgage payments? The most important thing you need to know is contained in Section 523(a)(16) of the Bankruptcy Code, which protects homeowners from the accumulation of unpaid HOA dues. That section discharges HOA dues arising prior to the petition ...