Dues Liability Ends With Foreclosure Sale

   Question: Our son purchased a condominium in Tempe while he was attending Arizona State University. He has graduated from ASU and taken a job in Los Angeles. The condominium was “underwater,” and the home was sold at a foreclosure sale to an investor several months ago. At the time of the foreclosure sale, my son was current on his HOA monthly dues. He is still getting bills, however, from the HOA for the monthly dues. Is my son liable for any HOA monthly dues after the foreclosure sale?

   Answer: Probably not.

The foreclosure-sale process is as follows: There is a foreclosure sale on a specific date. If an investor purchases a property at the foreclosure sale, the investor has until 5 p.m. the following day to pay the purchase price to the trustee conducting the foreclosure sale. The trustee has seven business days after the foreclosure sale to deliver the trustee’s deed to the investor. The investor then has 15 business days after the foreclosure sale to record the trustee’s deed.

When is your son no longer liable for HOA monthly dues? Arizona law says that the date of the foreclosure sale is the date for passing of title. The payment of the purchase price, and the delivery and recording of the trustee’s deed, are only “ministerial acts.” Therefore, your son’s obligation to pay the HOA monthly dues should have terminated on the date of the foreclosure sale.