Are you looking for how to get out of paying HOA dues before they collect all your money? Then you are in the right place. In this article, we are going to discuss the possible ways of getting out of paying HOA dues.
The easiest way to get out of paying HOA dues is by selling your house. Once you sell your house and move out of the community, you are no longer part of the HOA hence not required to continue paying HOA fees. You can also get out of paying HOA dues by leaving the HOA.
The HOA is usually an association of homeowners in a community who came together to create and enforce rules that will govern the properties in the community.
This is to say that once a person buys a house in a community/condominium managed by a mandatory HOA, he or she has automatically registered his or herself to the HOA and is legally mandated to pay the HOA dues by fire by force. A mandatory HOAs are the type of HOAs you cannot refuse to join. Once you purchase a house in the community, you are automatically a member.
You usually see HOAs in organized single-family homes or buildings with multiple units. Once the HOA is formed, the homeowners have to elect those they want in the board of directors who will, in turn, oversees the rules and regulations outlined in the HOA CC&R. Depending on the HOA, the HOA rules can also cover your backyard which can be very annoying.
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How to Get Out of Paying HOA Dues
1. By Selling Your House
While this may sound very annoying. This is the easiest way one can get out of paying HOA dues. Simply sell your house and move to another location.
If possible, sell the house and use the money to buy a house in another community with no HOAs. You can even sell the house and meet any container home builder to design and build a cheap yet luxurious long-lasting shipping container home.
However, depending on the community where the HOA is, even if you sell your house to move. You may be asked to pay up all your outstanding HOA dues before moving.
HOA payment is inevitable as long as you’ve given your consent to them by purchasing a house in the community. You will continue to pay the dues even if you go bankrupt.
Also, please don’t be annoyed about the idea of selling your house because that is the only easiest way to end the unnecessary high fees from HOA.
Other methods of not paying HOA fees you may find in this article may work, but you may have to suffer and spend a lot of money before you can achieve that. And there is no guarantee that after spending all that money, you will successfully get out of paying HOA dues.
Come to think of it, there is nothing wrong with moving. You can actually move to a place where there is no HOA and where you will not be forced to join any HOA in the nearest future. Think about it.
However, if your house has a lot of memories that you cannot leave behind, you can try other methods explained below.
2. By Leaving the HOA
Another best way to stop paying HOA dues is by leaving the HOA in peace. However, this is usually not easy as you think. In my last article about the easiest ways to leave HOA, I was able to explain how difficult it is to achieve this. Except maybe, the HOA is not doing well at all and it is obvious that they are not. You may decide to opt-out but you must get a lawyer to see to this.
Leaving an HOA involves the majority of other homeowners in the community voting in your favor which is usually hard to see because if you succeed in leaving the HOA, it will create a vacuum they will have to fill. If they use to pay $400 dues every month, the dues may be increased to $800 because you left so they likely won’t vote in your favor. You can read the article to find other ways you can successfully leave an HOA without selling your house.
3. By Filing Chapter 7 Bankruptcy
While this is not a good idea for someone who is not bankrupt, it is a means of not paying HOA dues. But the question is, how can you file Chapter 7 bankruptcy when you are not bankrupt. So I don’t think this is a good idea except you’re indeed bankrupt.
Please note that filing of Chapter 7 Bankruptcy also means you are surrendering your house. Once the filling is done, it will take three months before everything will be finalized. You will be asked not to pay all the outstanding payments while the HOA hold on to your house to recover the money you are owing.
This is not a good idea at all. It is better to sell the house, pay up your outstanding dues and move to another location where you won’t be paying any HOA dues anymore than filing for Chapter 7 bankruptcy and losing your house to them.
The only time filling Chapter 7 Bankruptcy is required is if the money you are owing to the HOA is more than your house would cost if you decide to sell it; which can never be. There is no way you can owe HOA an amount that is greater than the value of your house.
Except if that is your case. But if that is not your case, I suggest you continue paying the HOA or sell your house and move to another location not operated by HOA.
4. By Filling Chapter 13 Bankruptcy
With this filing, you will still be able to hold onto your property while making your outstanding payment. The court will draft out how you can be able to manage to pay the old debts with the new ones you will continue to pay as you are still the owner of your house. HOA dues are something you can never stop paying even if you suddenly go bankrupt. The court may give you between three to five years to pay up depending on the amount you are owing.
Meanwhile, to file either a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, you will need the services of a bankruptcy lawyer. You need a good one for that matter and you will be paying them for their services.
However, if you decide not to sell your house and move but to stay and continue paying the HOA dues, you can check out this article on how to lower HOA dues in the community.
Why Do HOA Collect Dues
HOAs collect dues to ensure that the community is maintained and repairs are done to things that got spoilt. HOAs also collect dues for the use of elevating the value of the properties in the community such as by building inground swimming pools, tennis courts, etc, and other unexpected expenses.
Why are HOA Dues High
HOA dues are sometimes high because of emergency repairs in the community, or to remove a hidden mold in common areas of the community. The HOA fees can be high if the HOA needs funds for capital improvement assessments such as the renovations intended to increase the value of all the properties in the community.
With that being said, do you still want to get out of paying HOA dues? It’s very hard to achieve except you decide to sell your house and leave. That is the only possible and easiest solution to this. Think about it and make your decision. You either manage and continue paying the dues or sell your house, go to another location with no HOA and buy a new house.