A recent article describes a big problem homeowners with homeowners association dues following bankruptcy. The big problem is found when such homeowners surrender their homes, but still remain owners of the property because the bank will not take the property back. A partial excerpt of the text is found below:
A federal bankruptcy judge in Nashville has ordered the sale of a flood victim's home after the lender refused to foreclose, in what legal observers say is a first-of-its-kind ruling.
Sheryl Pigg lost nearly everything in the 2010 flood, according to The Tennessean. She ultimately found a new home, declared bankruptcy and discharged her debts.
But a 2005 change to federal bankruptcy code made Pigg liable for continuing homeowners association fees at her abandoned home, because she was still the legal owner. Pigg sued mortgage holder Bank of America to get the lender to foreclose, accept a deed in lieu of foreclosure or allow a sale of the Nashville condominium.
In his ruling, Judge George Paine II ordered Pigg's bankruptcy reopened so that a trustee can sell the home, with the proceeds going first to the homeowner's association and then the bank. He reasoned that Bank of America has consented to the sale of the flood-damaged condominium through its inaction.
"With the real estate collapse, lenders, who otherwise have the right to do so, are choosing not to foreclose on their collateral leaving homeowners in limbo," Paine wrote. "Congress' broadening of (the bankruptcy code) to protect HOAs deprives the debtor of a fresh start, and thwarts the goals of the entire Bankruptcy Code."
In court filings, Bank of America argued that it was not obligated to foreclose on an abandoned property.
"Bank of America is reviewing Judge Paine's decision," the bank said in an emailed statement to The Tennessean. "At this time, we have not decided whether to appeal."
For questions on homeowners association dues in bankruptcy, call the San Jose Bankruptcy Attorney Henshaw Law Office at (408) 533-1075.
www.Bankruptcy-SanJose.com
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ReplyDeleteThe Statute of Bankrupts of 1542 was the first statute under English law dealing with bankruptcy or insolvency. Bankruptcy is also documented in East Asia. According to al-Maqrizi, the Yassa of Genghis Khan contained a provision that mandated the death penalty for anyone who became bankrupt three times.
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Het is echt een heel slechte situatie voor een persoon om een faillissement geconfronteerd. Eigenlijk is dit een juridische status waarin een persoon niet in staat om de schulden terug te betalen het te danken heeft aan de schuldeisers. In de meeste jurisdicties, is faillissement opgelegd door een gerechtelijk bevel. Lees meer
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