Question by : can a california hoa charge legal fees on a non delinquent account?
my rental condo went into foreclosure earlier this year so i filed chapter 7 in august. the condo foreclosed in september and bk discharged in november. the hoa sent me an invoice on 7/27/10 with the dues, lien, and legal fees owed prior to filing so I would know how much to list in the filing. I received a balance statement dated 9.23.10 that credits my account with the aug. and sep. dues I paid post filing, but carries forward the pre-petition balance as balance due. the condo foreclosed 9.28.10 and the hoa billed the lender for oct. and nov. dues. Unfortunately, I also paid them the oct and nov dues because those checks are automatically generated from my bank. I requested a refund for the last 2 months dues, but the hoa wont issue the refund unless they get to keep a “post bankruptcy, monitor lender foreclosure legal fee” of $ 150″. My own bk attorney doesn’t know if that’s legal. she suggested I take them to small claims court. I contacted a few more lawyers, but their fees are more than what I could recover in court. the cc&rs are very vague, they say the hoa can recover legal fees on foreclosed homes, but cannot collect if the assessments are paid on time. It doesn’t mention anything about pre and post bankruptcy debts. So how am i supposed to know if the hoa can legitimately keep a portion of money I paid them in error or if they’re just hoping I don’t call their bluff?

Best answer:

Answer by Glenn S
Sue the HOA in small claims and claim that your debt was discharged in BK and that you do not owe the money. Worst case, you lose the case. Why are you asking for legal advise here. You already have received good legal advise from a better qualified source than you will ever get here.

What do you think? Answer below!