Condo Association Management Blog

It should be whoever owns the unit at that point. Which is most likely a bank.  

I can tell you from experience that YOUR ASSOCIATION will pay all fees until the BANKRUPTCY is settled. I our case it's going on 3 years. Go see your association lawyer asap! Have him file the paperwork to lien the unit(s) for unpaid fees. If your former mortgage owners were upside down in the outstanding mortgage vs property value, no bank or mortgage company will be anxious to foreclose, lose money in the process and then be strapped with monthly fees. No investor would want to touch the place. A suggestion (only if your absolutely sure) when the time comes, have YOUR association lawyer foreclose on the unit(s ) for unpaid fees then rent them out so you can stop the bleeding of association funds; who knows, maybe you could make some money for the association over time. The drawback here is that you could invest association time and money only to have the mortgage holder say "we're going to foreclose in 3 months and you've cleaned up the place for them!

The HOA may pay the fees or the bank, depending on the type of bankruptcy you declare.

I think that your HOA should go after the Bank for the fees - assuming the property is vacant, which you didn't mention. If the bankrupt still resides there, I would go after him too. South Carolina is a "title theory" state (I think), which means that the mortgagee (the Lender)is given "legal title" to the property when the Borrower signs the Mortgage as security for the Note - even though the Deed is in the name of Borrower. The Borrower maintains equitable title throughout the life of the Note until the balance is paid; then the Lender Releases the Mortgage and the Borrower takes legal title back from the Lender. In a Title Theory state, the Lender has legal title subject to the Borrower's "equity of redemption." I'm thinking that once the Borrower's Note was discharged in Bankruptcy, the Lender (that is, the current Note and Mortgage owner)possess both legal and equitable title as a matter of law - even though the Deed in the land records still may be in the Bankrupt's name. 
 
I would suggest finding out where the tax bills are being sent. Also, in the bankruptcy file, you should be able to find the name and address of the current Note and Mortgage holder. Call the bankruptcy court (federal court)clerk's office and ask for info as to whether you can access this info online. Next time a bankruptcy happens, the HOA should be notified (correct?)and you should go to the "341 hearing" (meeting of creditors) in order to ask the bankrupcy trustee who runs the "341 hearing" for the info on the current mortgage and note holder - an maybe you can get some valuable advice or info from the trustee 
 
Don't let the lack of a foreclosure action by the current mortgage owners stymie your efforts. You must be aggressive and treat this as a learning experience. Your HOA is entitled to its fees. Your job is to LEARN and to take action. Maybe advertise for and/or find an experienced lawyer who's willing to charge no more than $100 hour. Maybe you have such a lawyer living in one of your units.

You are saying that the owner surrendered the property which usually means that the title was transferred to the bank. It's often called a volunteer foreclosure. 
 
If the title has indeed been transferred the bank has the responsibility to pay your dues from the moment that took over the property. 
 
I am not familiar with South Carolina laws, but most likely HOA debt is personal debt, meaning that the previous owner would be responsible for all money owned before the transferred. If that debt was included in discharged in bankruptcy you are really out of luck. You will not be able to collect on it. 
 
If for some reason the transferred of property has not occurred (you can find it out from the county records, often for free) the owner would still be responsible for the debt. The debt incurred from the time a bankruptcy is discharged is not part of that bankruptcy and is collectible.