Home Selling in Lakeview>Question Details

Matt, Home Seller in Chicago, IL

Another condo owner is delinquent with dues and we are considering a lien. I am also trying to sell my condo

Asked by Matt, Chicago, IL Sat Jul 12, 2008

unit. Should a lien on my neighbors condo be a concern for me? We are in a 3-unit condo and this owner has been delinquent for over a year. He's currently 5 mos. delinquent and we've had enough. We're telling him to become current by end of month or we're putting a lien on his property. Is this a bad thing or "red flag" for buyers? Do I have any recourse?

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It depends..... Your buyer will request HOA documents....such as CCC&Rs, financial statements. minutes of your HOA meetings. They'll see that there was an issue with the homeowner. With a 3 unit HOA, this is potential cause for concern, unless the HOA has plenty of money in reserves.

Ask your title company to pull a preliminary title report on the property.....the owner may be faccing foreclosure. If so, the potential cash strain on the HOA could be solved quickly.
Web Reference: http://www.cindihagley.com
1 vote Thank Flag Link Sat Jul 12, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
Have to agree with Cindy's reply. Also, as a small complex 5 months delinquency is a great strain on the operating budget. Not sure how things work in other states, but in Connecticut the association would have started foreclosure proceedings 3 months ago. Unfortunatly if the unit goes into foreclosure, the value of your unit is adversly affected. But, by doing nothing the desirabilty of your complex is negatively affected as the operating budget will most likely require a common fee increase to support the delinquent owner. Double sword! Darn if we do, and darn if we don't... Good luck, Jim
0 votes Thank Flag Link Sat Jul 12, 2008
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