Foreclosure in 01845>Question Details

Mike, Real Estate Pro in 01845

how can a condo association forclose on your condo if you stop paying condo fees?

Asked by Mike, 01845 Sun Jul 24, 2011

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Mike you purchased a deed restricted home, part of this restriction is that you abide by the rules of the association! If they have liens on the property because you stopped paying your dues, they can just like a bank can ask a judge to foreclose on the home to satisfy debts you owe them!
1 vote Thank Flag Link Sun Jul 24, 2011
You seem surprised, Mike.

Some people have a funny habit of not always wanting to pay for things. People with parking tickets tend to let them accumulate, and Seattle has taken to "booting" cars with a large number of outstanding parking tickets.

In the same way, a condo association has no legal right to garnish your wages, but they do have the legal right to place a lien on your property for unpaid condo fees, and to foreclose on that lien at their pleasure.

All the best, and stay current . . .
1 vote Thank Flag Link Sun Jul 24, 2011
Massachusetts Law MGL Chapter 183A Chapter 6 http://www.malegislature.gov/Laws/GeneralLaws/PartII/TitleI/… 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!
0 votes Thank Flag Link Mon Jul 25, 2011
Massachusetts has what is referred to as a super lien law. This is spelled out in MGL Chapter 183A and covers all Associations in MA whether in the condominium documents or not. The Association even has a priority lien before mortgages. If an owner doesn't pay their fees, the Association is required to notify the mortgage company before instituting proceedings. If the mortgage company doesn't pay, then the Association proceeds with the action.

Failing to take the appropriate steps could jeopardize the priority lien so most Associations will foreclose but the banks step up first to protect their collateral interests. If the Association doesn't take the steps the other owners could be left paying the lost fees which would be a breach of the Trustees fiduciary duties to the owners. The trust doesn't have much of a choice but to take the necessary steps. Also, the legal fees in collection actions are a priority fee too. It really benefits all the owners in a community. Many condominium associations in states without a priority lien are struggling to pay their bills because of the excessive delinquencies.

The link is an article on the priority lien. (No affiliation to the firm)
0 votes Thank Flag Link Mon Jul 25, 2011
If you owe them money, they can foreclose. You should call an attorney to explain the process to you. If you are struggling, you can just sell and move out. If you are upside down on your mortgage, you can do a short sale. I would be happy to explain that process to you. We would address all the liens through the short sale process.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Sun Jul 24, 2011
Mike,

Is it that you are on the board of an association and want to know how the procedure works? Or are you not paying your home owner fees? If you are on the board, hire an attorney, if you are not paying hire an attorney, but your rights are spelled out and unless you become current or work out a payment plan, pack your bags.

You want the association to maintain the property and fix things as needed, money is required for that. The board also has the right to charge a special assessement if the cost exceeds the reserve in the bank.
Web Reference: http://www.LouisWolfson.net
0 votes Thank Flag Link Sun Jul 24, 2011
Mike when purchasing a home in a hoa you must abide by all condo/hoa laws, bylaws and rules. One of them goves teh condo association the right to foreclose if you do not make your hoa payment. Usually making simple paymenty arrangements will cure this as the hoa doesnt want to own your property but needs to protect itslef and the other hoa members.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Jul 24, 2011
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