Foreclosure Question

Started by DonaldN • 1 replies • 1549 views

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DonaldN (Connecticut)
Posts: 183

Posted:

Our condo association is in Connecticut - condos and hoas fall under Connecticut's Common Interest Ownership Act which we have to comply with - because of recent amendments to the Act, we have to have a Foreclosure Policy Statement in place to address unit owners who are deliquent on their condo fees.

After reading the canned Statement from our management company, it appears to resemble a typical bank's foreclosure on a homeowner for missing mortgage payments.

I can understand that associations' need a mechanism to collect fees from deadbeat unit owners but this seems radical - I would think something like small claims court would suffice.

Can anyone on the forum shed some light on this - is it similar to a bank foreclosure ? maybe someone who lives in Connecticut or another state with a similar law can provide some insights - our prop manager is clueless .

MaryA1 (Arizona)
Posts: 7,043

Posted:

Donald,

The BOD should have a collection policy in place that outlines all the steps that will be taken to collect delinquent assessments. This policy should be sent to all the members so that they are aware of the process. The last step would be to foreclose. It may sound harsh but sometimes it's the only way to get the member to pay. In this time of financial distress for so may people, many of these delinquent members are also filing for bankruptcy and are facing foreclosure from their mortgage co. The BOD needs to keep on top of all this to ensure that they have liens in place which would enable them to collect when these things happen.

Yes, an HOA foreclosure is somewhat the same as a bank foreclosure. When a delinquency gets to a certain point it may be a good idea to turn over the account to an attorney. Our assn does this and it has worked out quite well. Once the attorney is resp. for collecting, all their charges are sent directly to the delinquent member. Our attorney does a credit check on all the accounts she is resp. for collecting and will make recommendations to the BOD as to what the next action to take should be.

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