Please review the article about super liTypically, mortgage servicers are in a unique position of power when it comes to asserting lien position as long as the proper title work and front-end activity takes place. With the exception of tax liens, virtually all other lien interests secured after the recordation of the mortgage lien are inferior to the mortgage lien. Laws enacted in 16 states and the District of Columbia spoil the servicers position of power, as community association liens are granted senior lien positions under certain circumstances involving non-payment of dues, these liens are called â€œSuper Liensâ€. For all general purposes, these Community Associations have been able to affirm that they act as mini-government bodies in the day to day management of their properties and the association dues, are in fact a form of taxation.
The super- lien statutes vary from state to state, but can be categorized into three main groups segmented by statute type.
1) Expansive Super-Lien Statutes
Alabama, Alaska, Colorado, Connecticut, Minnesota, Nevada
Statutes in these states are based on section 3-116 of the Uniform Common Interest Ownership Act (CIOA). Section (b) of the statute specifically states that, with some limited exceptions, community association liens for non-payment of dues are â€œprior to all other liens and encumbrances on a unit.â€ The lien amounts are typically (see table below) limited to six months of delinquent dues. The provision allows for the speedy foreclosure of the unit without the need for further notification or notice to borrower, but with reasonable notice given to all lien holders whose interest is affected.
State Amount of Lien Special Circumstances
AL Six months prior dues â€¢ Applies to first mortgage loans only
â€¢ Atty fees and costs included in judgment amount
AK Six months prior dues â€¢ Applies to first mortgage loans only
â€¢ Atty fees and costs not included in judgment amount but are typically collected in the foreclosure.
CO Six months prior dues â€¢ Applies to condos only
â€¢ Applies only to assessments due after 6/30/1992
CT Six months prior dues plus HOA special assessments â€¢ Applies to first and second mortgage loans
â€¢ Atty fees and costs are recoverable through foreclosure
MN Six months prior dues â€¢ Applies only to first mortgages recorded after June 1, 1994.
NV Six months prior dues â€¢ Applies to first mortgage loans only
en states below:
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Charka, the consequence for you based on your legal and enconomic situation must be discussed with an attorney. Although information may be shared, guidance relevant to your situation and the conseqences to you are the responsibilities of your attorney. Keith has however, provided excellant information from which to start your discussion with an attorney. Many attorneys will allow a complimentry review of your legal status and recommend the best action. Be sure to ask, "Will this problem go away when (if) this property sells?" Let us know the outcome.
You will need to review the HOA documents for the property and see what language is in it and if necessary contact an attorney.