Rental Basics in Seattle>Question Details

Chris Holland,  in Lake Forest, CA

How does a NOD on the owner of a condo building effect the individual owners ?

Asked by Chris Holland, Lake Forest, CA Thu Sep 30, 2010

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Tim Tilbury’s answer
Great answer Dugald!

Chris, you may also want to check with your HOA Bylaws... Some HOAs will actually foreclose in First Position, meaning the HOA has a chance to purchase the unit and making every other lien JR. to the HOA position.

If this happens, it would be paid from HOA reserves.
0 votes Thank Flag Link Wed Oct 20, 2010
That would depend if it's a co-op or a regular condominium ownership. If condominium, the defaulting homeowner is more than likely behind on their HOA dues, which affects the entire community. If the condo forecloses, most of the time the HOA never recovers that money and may force future HOA dues increases or future assessments.
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0 votes Thank Flag Link Thu Sep 30, 2010
Do you mean how does one condo in a foreclosure sale affect the other owners? I think the word "building" vs unit is confusing. Can you elaborate?
0 votes Thank Flag Link Thu Sep 30, 2010
Hi Chris,

This can be answered several ways with one common theme: get some legal advice.

If you are an owner in a condo conversion and the developer has not turned over the association, then you have different issues than if your community has been turned over to the new owners. A lawyer will help guide you through your options and suggest courses of action.

In a condo, the association "owns" the building so it's important to know exactly what is being foreclosed upon.

Is the HOA delinquent in something and had leveraged the association's assets? ...or (in an unfinished condo conversion) is the bank simply foreclosing upon unsold units? This information is all important.

If you are a renter, then you need to chat with your local rental advocates - call the City of Seattle or a local renter advocate.

I hope that helps!
0 votes Thank Flag Link Thu Sep 30, 2010
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