Re: Depends on the state - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on September 03, 2008 at 17:04:53:
Rich - I currently have exactly the same issue to deal with at present, and I’ve followed this one for years.
As we all agree, it’s impossible to advise the original poster due to the lack of sufficient information. However, for a semi-interesting file, here’s a fact pattern:
I foreclosed on a house (in CA) several weeks ago due to the borrower’s failure to make payments (this makes sense because I later learned that she died in the house and…well…that’s another story).
Just prior to my trustee sale, the self-managed HOA’s President obtained a judgment and recorded an Abstract. Even if this HOA had corrected amended their CC&R’s to reflect the ability to record liens with the necessity of getting a judgment, they’d still lose out.
Now, according to the Household ruling of some years ago, the HOA lien is junior to my trust deed and was therefore wiped OFF title. The debt is not extinguished, but the debtor, now deceased, leaves an insolvent estate without other assets.
So, to the letter of the law, and the Household et al caselaw, I don’t owe a nickel for past dues. The bugaboo here is that the HOA folks are only owed a small amount, can’t afford to be stiffed by “Mr. Probate/Title Technician” and frankly, that have been exceptionally helpful.
So, while I don’t legally own the money, I’d be shooting myself in the foot by avoiding the payment. I must be turning into a softy.