Who is responsible for fees on foreclosed home?

Q: If I lose my townhouse to foreclosure in a gated community, where I pay my homeowners association fees on a monthly basis, can they legally sue me once a sign is put up at the property that is "bank-owned?"

Do I continue paying the HOA fees, or can I cease paying them once I vacate the townhouse?

I would appreciate your advice on where I stand concerning these fees.

A: Once the bank becomes the new owner of record, it would be responsible for the payment of assessments from the date of its ownership.

In addition, current state law allows the association to collect from the bank (or any new owner) the last nine months of delinquent assessments from the previous owner's account (which is your account).

Gov. Jim Gibbons just extended this time limit from six months when he signed AB 204 during the last Legislative session.

The new law takes effect Oct. 1 and could have more restrictions.

Now, if you did owe more than the nine months, the association could sue you in court, such as small claims court, for the balance of the money owed to them, even though you no longer live or own the home.

I cannot tell you to stop paying your assessments while you still own the home.

I can tell you that once you no longer own the home, you are not further obligated to pay assessments to the HOA.

Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. To ask her a question, e-mail support@hlrealty.com.