Assessment Dues forwarded to new owner without Lien?

Started by TabithaV • 6 replies • 2045 views

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TabithaV (Michigan)
Posts: 1

Posted:

Hi,
I took our HOA Secretary position in the middle last year because the preious member moved. To my surprise there were still 6 homeowners that still hadn't paid their dues (total of 78 homes) and late notices weren't sent out. I retrieved the names and sent out late notices in May. Then in July I sent a certified letter Titled "Intent to Lien" which stated if the payment was received by Aug 31st we'd start the lien process. Well in September when the Treasurer told me that 2 people still hadn't paid, I wanted to start the Lien process, but no one had any info for me. We are short on money and didn't have a preset lawyer. So now it's late September and I find out that one of the delinquent homeowners secretly did a short sale on his home and no one has any information on him. Here are my questions:
1) Since Intent to Lien Letter was sent out, but we hadn't gotten a lawyer involved, does that still legally bind the bank or new homeowner to pay the late dues? The dues were $174 and we never placed a late fee on them.

2) The first week of Nov. I'll be mailing the 2011 assessment fee letters and it was suggested that I just write both fees to the new homeowner explaining it was not paid by previous owner and should have been at time of sale transfer? Note: this is in Michigan.

3) Do you have to hire a lawyer to enforce a lien or is there anyway I could do it and have it notarized?

Thank You!!!

SusanW1 (Michigan)
Posts: 5,202

Posted:

We file our liens at the County. Call your county clerk for guidance.

But we do this BEFORE the house goes back to the bank. In fact, we lien according to our rules and regulations outlining the schedule for dues payments. So 11 of 250 homes in our sub have had liens on them in the last year. (some have been removed0

You need to jump on any home put up for sale nowadays. Make sure the sales rep for the RealEstate Co. knows that the home is a part of an HOA and if there is a lien on the property. Any prospective buyer should be aware of this.

(We have an advantage: the water is shut off until the bill is paid.)

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

1) Since Intent to Lien Letter was sent out, but we hadn't gotten a lawyer involved, does that still legally bind the bank or new homeowner to pay the late dues? The dues were $174 and we never placed a late fee on them.

No. The old homeowner still owes the dues. You never recorded the lien with the courts, therefore it doesn't exist. You can go after him in small claims court, but there is little else you can do.

Quote:

2) The first week of Nov. I'll be mailing the 2011 assessment fee letters and it was suggested that I just write both fees to the new homeowner explaining it was not paid by previous owner and should have been at time of sale transfer? Note: this is in Michigan.

You can ask the new homeowner for the old owners dues, but they don't have to pay them legally. But who knows, they might pay.

Quote:

3) Do you have to hire a lawyer to enforce a lien or is there anyway I could do it and have it notarized?

If you dont know what to do, yes, you need a lawyer. You can do it yourself if you know what your doing.

GlenL (Ohio)
Posts: 5,491

Posted:

What do your CC&R's allow for? Ours for example if the unit was foreclosed on the new buyer only owes from when they take title; if it was a voluntary sale (short or otherwise) the new owner is responsible for the outstanding assessment.

Studies show that 5 out of 4 people have problems with fractions

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

What do your CC&R's allow for? Ours for example if the unit was foreclosed on the new buyer only owes from when they take title;

Hah, even if your CCR's say that it doesnt mean its legal. If I was the new homeowner I would bring that one to court and you would loose. State law supersedes anything your HOA can dream up.

You can put no black people or anything you want in your CCR's, it wont hold up in a court of law.

GlenL (Ohio)
Posts: 5,491

Posted:

Quote:

Posted By SteveM9 on 10/10/2010 4:08 PM

What do your CC&R's allow for? Ours for example if the unit was foreclosed on the new buyer only owes from when they take title;

Steve it must be both a comfort and a burden to KNOW how a judge will rule on a contract law case before it is even litigated. You probably could make a fortune consulting with attorneys and telling them whether or not their case was a winner, not to mention all of the cases that could be cut from the dockets because Steve KNOWS how the judge will rule.

For the life of me I fail to see where you have a problem with the passage you quoted.

Quote:

What do your CC&R's allow for? Ours for example if the unit was foreclosed on the new buyer only owes from when they take title;

Per State law we cannot collect past assessments on a foreclosed unit from the new owner, they start with a clean slate. And to attempt to bring race into the equation is ludicrous to the extreme.

Studies show that 5 out of 4 people have problems with fractions

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I know, I'm awesome. Thanks for the kudos Glen.

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