Legal Question in Bankruptcy in California
I filed Chapter 13 and notified my HOA that I filed. They wanted my contact information to contact me further and I said I did not want them to contact me...gave them the bankruptcy case no. and my attorneys phone number and address. I asked them not to contact me again. Tonight...12 days after I notified them..I received a knock at my front door and a process server was there serving me papers that the HOA elected to proceed with foreclosure on my property...considering I am upside down (underwater) on my mortgage to the tune of about $300K I'm not sure they would get anything. Also..they are named in the bankruptcy as a lien to the property to be discharged. Is it legal for them to continue to try and collect from me and contact me at my home in the evening (7:45pm) at night?
2 Answers from Attorneys
This is a violation of the automatic stay in bankruptcy. Contact the lawyer who is handling your bankruptcy.
The HO Assoc. obviously did not get the word that you filed a Chapter 13 case. The automatic stay is in effect if you filed. Just send your lawyer the papers you received and forget about it. It is only a minor technical violation of the automatic stay that cost the HO Assoc. money in attorneys' fees, court filing fee and service of process costs for nothing. However, the HO Assoc. has a good reason to foreclose since the H.O. Association's lien is superior to the mortgages so it would get paid 100% if it is able to foreclose and it will be paid 100% by you in your C13 case. It will probably try to charge you for the cost of that lawsuit to foreclose so review the HO Assoc.'s claim and object if your lawyer thinks that is the right thing to do. The HO Associations rarely have to foreclose because the bank holding the first mortgage pays what is owed before the foreclosure to protect its interest in the property. Don't be mad at the HO Assoc. Your neighbors are strggling to pay the cost of running the building where you live and when you don't pay they have to pay your share. Their properties have also lost value and may also be upside down. It is a bad situation for everyone.
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