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Bucking the HOA system: Delinquent condo association unit owner tries bankruptcy, foreclosure, and buy back at sheriff's sale


When an owner of a unit in a condo association or HOA is delinquent in paying his condo maintenance fees and then the property goes into foreclosure, then to a sheriff's sale can the HOA force the new owner to pay the past HOA dues of the previous owner as a condition of the sale? We are in the state of Indiana.

I have tried to get someone in the industry to tell me exactly what a sheriff's sale involves (including the sheriff's office that I called 4 days ago have not heard back from yet) and so far I haven't been able to get any answers.

Last week the owner of the condo unit said that the information regarding his unit going to sheriff's sale is a mistake but as of today the delinquent property is still being shown on the list for the Feb. 2 sale.

There must be some way to get information about what liens are required after the amount listed by the sheriff is met and the highest bidder takes ownership. I have been told that the owner who is not the developer, bought the condo unit through his business or LLC and intends to bankrupt the condo unit to buy it back through another business he currently owns for pennies on the dollar. As a matter of fact he may have already bankrupted that shell and thus sending the property into foreclosure. That sounds illegal.

How much access to that type of information am I able to obtain before the sheriff's sale. I just want to know if there are going to be complications after the fact if I am the highest bidder on the property. Can the sheriff's sale be cancelled at any time prior to the sale and if so under what conditions would it be?

Answers (7)

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