Massachusetts Law MGL Chapter 183A Chapter 6 http://www.malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter183A/Section6 basically state that any unpaid fees to the condo association becomes a "super lien" and supercedes any mortgages held by the owner. It also give the association the right to foreclose and recoup not only deliquent monies but recoup any costs in obtaining that money. There are very strict quidlines to be followed one of which notifies mortgagees and allows them to pay the arrearages to avoid foreclosure.
So yes a condo association can foreclose and quite frankly sometimes they do!... more
No. That is one of the big reasons to try a short sale. In a short sale, the borrower/seller has a little more control over what the home is sold for. They can reject offers that are too low. However, they risk the chance of not getting an offer, and the home going to foreclosure, if they try to get an offer above fair market value. It is always wise to start at fair market value and then reduce the price every other week or so, until an offer is received. That way the seller knows they did everything they could to mitigate the loss and the amount of the deficiency. Once the bank owns it, they can sell it for whatever they want. They may list it well below fair market value, just to get if off their books, and there is nothing the foreclosed upon homeowner can do about it. If you live in a state that allows deficiency judgments after foreclosure, you could be on the hook for whatever that loss is.... more