Legal Question in Real Estate Law in Texas

Mortgage Default and Homeowners Association problems

After unemployment and relocation for a new job, I am having to voluntarily ''give back'' my condo in to the mortgage company. There is currently a lien on my condo because of a $15,000 special assessment that I have not able to pay in full. The condo is not livable/sellable because of damages caused by water leaks via the roof/terraces. I have made every effort to keep up my mortgage payments, but I am not financially able to maintain two households in two cities. Will the HOA get paid once the mortgage company forecloses and sells the property? Can the HOA sue me for the remainder of the assessment or garnish my wages? In this situation, what is the worst-case scenario?


Asked on 12/20/01, 2:43 pm

1 Answer from Attorneys
Lynwood Jordan Lynwwod Jordan, Attorney at Law

Re: Mortgage Default and Homeowners Association problems

Your questions deal with the meaning of legal documents (condo security deed and rider). The questions cannot be answered without reference to those documents. The worst case scenario would be that the mortagage company pays the HOA dues, that the payment is added to the balance of your loan pursuant to the language of the documents, that the foreclosure occurs, and that the mortgage company sues you for the deficiency. I am not sure what you mean by "give back" in your question. If that means a deed in lieu of foreclosure, the HOA dues might still be added to the loan balance. Without seeing the documents, one cannot tell if the mortgage company has that power.

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Answered on 12/26/01, 1:42 pm


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