QUESTION

What is we did a bankruptcy 7 and the HOA still sells deed ?

Asked on Sep 14th, 2012 on Real Estate - Nevada
More details to this question:
Bk done feb 2012, HOA notified sent to collection company NSA in Nevada and sold note today 9-14-12? Can the HOA sell something after notified of BK?
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2 ANSWERS

Real Estate Law Attorney serving Reno, NV at Hawley Troxell Ennis & Hawley LLP
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The bankruptcy imposes an automatic stay that stops creditors from harassing you, taking steps to collect the debt, or doing a foreclosure sale pending the outcome of the BK, or until the HOA files a motion to lift the stay so that it can proceed with a foreclosure sale.  However, your question is whether the HOA can sell the note, not whether it can foreclose.  Normally an HOA would only have a debt owed to them per the CC&Rs, not a promissory note.  Yes, it can sell the debt, but the BK rules affect the new owner of the note (apparently the collection company) the same as the HOA, therefore the fact that they sold the debt .  If the HOA filed a claim in the BK, then normally it would file a notice with the court that the claim has been assigned to a new party (the collection company). If the collection company is taking actions it should not have the right to take, they should be told to cease and desist due to the BK, assuming the BK is in a stage where the stay is still in effect.  
Answered on Sep 17th, 2012 at 1:57 PM

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R. Christopher Reade
If you HOA obligations were discharged in the bankruptcy, then the collection agency is violating the stay.  However HOA obligations are ongoing and continually accruing obligation/debt.  Therefore post-petition obligations may not have been discharged in the bankruptcy.  You should check with your bankruptcy counsel to see if the discharge has been violated.
Answered on Sep 15th, 2012 at 1:31 PM

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