If your house or townhouse is posted for foreclosure by your HOA or homeowners association in Texas, you can stop the foreclosure by filing chapter 13. A chapter 13 plan can propose to catch up the delinquent payments over a 36-60 month period. But you must pay the regular HOA dues for future years (or future months, if you pay monthly).

Some properties are even "underwater" such that more is owed on the first mortgage than the property is worth. In those circumstances, provided that your HOA association has a subordinate lien, it is possible to file chapter 13 and "strip off" the lien for the delinquent payments, and pay your HOA their delinquent payments as an unsecured creditor, based on what you can afford, as opposed to the full amount plus interest, as they usually have to be paid in chapter 13.

This is all pretty complicated, but don't worry about it. Just make an appointment to come see us at our Houston law office and we can show you how chapter 13 can stop your HOA from foreclosing on you (so long as you qualify for chapter 13 and can otherwise afford the property). Order my free Special Report, "What You Need to Stop Your Texas Foreclosure Now! Secrets the Mortgage Companies Don't Want You to Know." It also discusses HOA foreclosures.


J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization