$20.000 special assesment... after my property was foreclosed ???

Question

I bought a $300.000 condo in Concord, CA. Zero down. For 7 months I paid every bill on time - mortgages, HOA and taxes until... "TAXCO Condominiums Association" told us that we MUST pay $20.500 special assessment.

My realtor had told me nothing about possible coming special assessment. I lived from paycheck to paycheck and had to leave the property.

I didn't pay ANY bills until my property was foreclosed by "Deutsche Bank National Trust Company" on 11-16-2006.

Today, AFTER ONE YEAR it was foreclosed, I received a letter from "Allied Trustee Services." They say that I owe "prior the date when the property was foreclosed... delinquent in payment of the assessments, late charges..." $24.773.08

I can agree that I owe HOA monthly payments until the property was foreclosed but special assessment?

They told me they gonna bring me to court. Can they? What should I do? Fight with them? Go bankrupt? What about the HOA monthly payments that I owe? How can I separate this payment, should I?

I looked at my papers and found out that I was paid $9.500 for the POSSIBLE coming special assessment from my seller.

Called my agent and she said that she is sorry that her prediction of special assessment was $9.500 when in reality it became $20.500.

I spent ALL THIS MONEY on paying my mortgages because I believed that market would go up in a few months and I would be able to "flip" the property.

Now,,, I'm broke. I work as a security guard and going to school full time, and have 2 dependents. I can barely live from paycheck to paycheck to survive. No way I can pay this $20.500 + fees money.

Should I go bankrupt or kill myself? Also, I owe about $42.000 on my credit cards. Last payment I made was more than a year ago.

Answer 1

As much as I detest them, you're going to have to see a lawyer... A few questions though...
Why do you believe your realtor knew about the SA? If you can prove your realtor OR the previous owner knew about the SA, you may have a case against either of them... What was the assesement FOR? When was is actually levied? (ie, before you bought the place?)
Good luck... and I hoped you learned something from this!

Answer 2

You also owe the special assessment. Had there not been a foreclosure, you would be responsible to pay it. When Deutsche foreclosed, the assessment was a lien against your condominium, and the lien followed the title. Deutsche took the loss on the special assessment as well as your mortgage balance.

It would be similar to a special assessment by a taxing authority. When these are levied, they also become liens on the property involved. Since the assessment occurred during YOUR ownership, the debt is yours.

The above poster is correct. If there was no notice provided of the upcoming special assessment, chances are good that the realtor and/or the seller had no knowledge.

However, if you can find evidence that the prior owner KNEW (was advised in advance) of the upcoming assessment and did not disclose that fact, you would have a case against the former owner.