I have no mortgage; can a condominium association foreclose on my condo?

Asked by Linda Richards, Austin, MN Fri Feb 1, 2013

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Susan Hofflander’s answer
Susan Hoffla…, Agent, Shoreview, MN
Wed Mar 6, 2013
Hi, Linda!
Simply put, yes they can. When you purchase a property in an association maintained community, you agree to adhere to all of the rules/regs, bylaws etc. Included in that agreement is to keep current on your association dues. If you do not, your breach of doing so can result in the association attaching a lien to the property or even foreclosing. It's somewhat similar to the way the county can foreclose if you don't pay your real estate tax.

Make sense?

Good luck!
Web Reference:  http://www.homestosellmn.com
0 votes
Thomas Drayt…, Home Owner, Saint Paul, MN
Sun Mar 10, 2013
Susan, you've hit the nail right on the head!

Everyone agrees to pay their HOA dues when they buy a condo or townhome in an association, and you are legally bound by that agreement. If you fail to pay, the association will put a lien on the property (meaning they get paid when you sell) or it can lead to foreclosure if, as Susan states, you don't pay your real estate tax as well. Believe me, the government is going to get paid.

If you have no mortgage and cannot keep your HOA dues current, you might want to consult with an accountant or attorney to discuss your situation and options. You want to try and avoid foreclosure if at all possible.

Hope this helps.

Thomas Drayton
Keller Williams, Eagan
Web Reference:  http://www.beshomes.com
1 vote
Cameron Piper, Agent, Forest Lake, MN
Fri Feb 1, 2013
Linda,

Great question, but you really need to explore the specifics with an attorney.

The fact that you don't have a mortage is immaterial. If you don't pay your association, eventually they will get around to suing you and taking a lien against the property, I believe that they also then have the right to collect on that lien by foreclosing the property. It would be very expensive and unlikely, but if there was enough equity there, they might give it a shot.

Cameron Piper
Coldwell Banker Burnet
licensed MN Real Estate Broker
612-839-4202
Web Reference:  http://www.CamPiper.com
1 vote
Harold Lear, Agent, San Diego, CA
Mon Dec 23, 2013
The foreclosure is subject to a 90 day Right of Redemption if it was a Non Judicial foreclosure.
(Cal Civ Code sec 1367.4)
This gives the home owner the option to try to get the property back by buying it back for the amount of the lien, cost and other charges.
0 votes
Gail Strom, Agent, Apple Valley, MN
Fri Dec 6, 2013
Your HOA requires participation from everyone in that association. If you don't pay they can take legal action to foreclose on your unit. Please speak with an attorney if this has happened or if you're afraid that it might. You also have an obligation to pay property tax, that's another way a homeowner can loose a property if they don't get paid.
0 votes
Russ Douville, , Saint Paul, MN
Tue Apr 16, 2013
Yes, they can. If you don't pay the dues or special assessments for projects the association can foreclose.
0 votes
Donald James, Agent, Edina, MN
Sat Feb 9, 2013
The short answer is, yes, it is possible. Are you current on HOA fees? If you are unsure of your situation I would recommend our Real Estate Attorney. Email or call for a referral to her.
Web Reference:  http://www.mywra.net
0 votes
this is true.
Flag Sun Mar 10, 2013
Marge Bennett, Agent, Fort Myers, FL
Fri Feb 1, 2013
why would you think they could not place a lien on your unit if you don't pay your fees and then enforce that lien by foreclosing.
0 votes
Vicki Schwar…, Agent, Victoria, MN
Fri Feb 1, 2013
Hi Linda,

Both answers below are absolutely correct. This does happen in MN and generally it is in cases like yours where there is no mortgage. They are assured they will collect their past dues if that is the case. I have an attorney resource for you if you need an experienced real estate attorney to talk to. Please e-mail me and I will forward you the information.

Vicki Schwartz
MN Real Estate Options
Broker/Owner/Short Sale Professional
Accredited Platinum Real Estate Professional
Phone: (952) 443-2056
Fax: (952) 236-6429
Cell: (612) 801-2355
e-mail: vsasold@gmail.com
Check out our website at http://www.mnrealestateoptions.com for great information on all aspects of real estate, for Buyers, Sellers and Investors
0 votes
Chris Block, , Saint Paul, MN
Fri Feb 1, 2013
Cameron is right. If you think of the association dues as essentially a mortgage it helps make a little more since.
0 votes
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