Bank Foreclosures: what's a board to do?

Started by BrianB • 2 replies • 1361 views

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BrianB (California)
Posts: 2,820

Posted:

As we face (potentially) more bank foreclosures, I wonder: What will your HOA do in the following situations?

1) Delinquent assessments or fines: Can you lien a home owned by a bank?
2) Voting rights: Do banks get to vote in annual elections? Can a bank run for board membership?
3) Use of common areas: If your common areas allow owners and guest to use them, who from the bank can use your areas? Who is the owner? More importantly, who are the guests? Can all bank employees use your pool as a "guest" of the bank owner?

your thoughts.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

1) Delinquent assessments or fines: Can you lien a home owned by a bank?
2) Voting rights: Do banks get to vote in annual elections? Can a bank run for board membership?
3) Use of common areas: If your common areas allow owners and guest to use them, who from the bank can use your areas? Who is the owner? More importantly, who are the guests? Can all bank employees use your pool as a "guest" of the bank owner?

Brian,IMHO
#1 In most organization the consent the owners give when they agreed to live under a HOA or whatever contain a clause that a lien has already been place on the property by the association. But, to be specific, you can lien any owner of any property within the HOA.

#2. Technically, each property has 1 vote or an apportioned vote and can exercise that vote. So yes. Any person listed as an owner of the property can run for the Board. With a bank or multiple owner such as an LLC or Company can appoint one person to hold the vote and can run for Board membership.

#3Just the same as a single owner of property, unless restriction apply, he can have the Michagan Marching Band as his guests. Your unaccompanied guests of anyone is not allowed to use the amenities, unless specified otherwise. The association can write the rules and regulation about the use of the amenities and can pretty much do as they please. Each association should have an effective and inforced Rules and Regulation.
CC$R' mean: Covenants, conditions and restrictions or some say Regulations. The owner is the part of the Bank that deals with mortgages held.
I bought my condo from a bank. The transaction was no different than with an individual. I dealt with an officer of the bank and she signed the transfer as holder of the Mortgage and owner of the property enpowered to perform this duty.

GeraldT4
Posts: 1,022

Posted:

BrianB,

1) Delinquent assessments or fines: Can you lien a home owned by a bank?

My Answer: The vast majority of homes are not owned outright by the owner of record, hence why liens for defaulted mortgage payments exist in the first place. Property tax liens of course are a different story. If you couldn't place a lien on a home, regardless of who the owner owes the money to (bank, family, bookie, etc.) that there'd be one helluva problem. : )

2) Voting rights: Do banks get to vote in annual elections? Can a bank run for board membership?

My Answer: Obviously most bank representatives (mortgagees) don't run for elections in the HOA's where their (owners) mortgagors reside. My gov. docs. require that if the mortgagee provides written request to the association that it requires notice of material amendments to the Declaration than it has to be sent via certified mail return receipt requested. Hence it can decide to protect the investment of which it funds to the owner (mortgagor). If the bank is listed as the owner, than of course it can run for the Board.

3) Use of common areas: If your common areas allow owners and guest to use them, who from the bank can use your areas? Can all bank employees use your pool as a "guest" of the bank owner?

My Answer: Only those number of owners and guests can use the common elements that the governing documents allow.

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