Can I keep my home if I file bankruptcy?
Yes, your primary residence (homestead) property is protected in bankruptcy. Therefore, if you file Chapter 7 or Chapter 13 bankruptcy you will not have to lose the home.
Will Chapter 13 bankruptcy stop an HOA foreclosure?
Yes, when a Chapter 13 case is filed an automatic stay is instantly put into effect. The automatic stay is a federal law that stops all collection activity, including foreclosure sales already scheduled to occur.
Can the HOA file foreclosure in Florida?
Yes, Florida law does allow HOA’s to file for foreclosure. In many ways, it is a lot easier and quicker for an HOA to foreclose on a home than a mortgage company. Therefore, if you are being threatened with foreclosure from the HOA you should contact an attorney right away.
What happens if I don’t pay the HOA?
The HOA will likely record a lien on the property for the amount due. If the lien remains unpaid, the HOA may begin a foreclosure case and force a sale of the property. There is no minimum amount required for the HOA to file foreclosure, they can file foreclosure for even one dollar.
How do I stop an HOA foreclosure sale?
Chapter 13 bankruptcy will stop the foreclosure auction, even if the auction is already scheduled. In addition, it may force the HOA to provide you five years to pay the balance without additional interest charges.
Should I file Chapter 7 or 13 to prevent an HOA foreclosure?
Chapter 13 bankruptcy can allow a homeowner to force the HOA into a five year payment plan. Essentially, the homeowner will have a 60-month loan to repay the back-due HOA fees, regardless if the HOA approves it or not. Chapter 7 may also stop the foreclosure sale but it does not have a payment… Read More »
