💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

KirkW1 (Texas)
Posts: 1,665
Posted:
In our next Board meeting I expect that we may have to vote on foreclosure of a house. Long story short, they were at foreclosure and an agreement for payment over a period of time was made. The owners have not held up their end of the agreement. What is more, their garage door is in need of repair and their yard is in very bad shape.

Because of other issues in the neighborhood I recently discovered the art of finding the warranty deed on a house. I noticed that on every one I have looked at there is a "planned development rider" that binds the owner to abide by the rules and pay assessments. It also allows the mortgage holder to pay the assessments and add them to the loan amount.

Now I would never suggest not asking our attorney, but has anyone had experience in asking the mortgage holder to pay the late assessments? I am sure that if we foreclose they buyer will stop paying the mortgage. And our management told us the plan would be to let the first mortgage holder foreclose and take the property from us and then sell it to someone who will hopefully pay their dues.

I guess my question is: since we file a public document that they haven't paid their dues anyway, can we actively tell the lender as well? And has anyone had any luck getting lender involvement in paying the dues?

If they lose their house so be it. But I would rather us get the money if possible.
DwightT (Idaho)
Posts: 664
Posted:
Kirk - I think you mentioned noticing that rider on your own mortgage a while back, which prompted me to take a look at my own. I've also got it. Amazing what you can miss when you are presented with this huge stack of "standard" documents to sign.

At any rate, because of that, at our last Board meeting (where we happened to have a representative from a Title company present) I asked about doing that. The person from the title company said that we absolutely could ask the mortgage company to pay the dues. The problem is that you have to find the right person to ask. If the mortgage is held by somebody like Country Wide, good luck. However if the mortgage is held by Corner Store Bank & Loan, then finding that right person should mean just walking in to the office and asking for the loan officer. They will probably be very willing to work with you to avoid you filing for foreclosure plus the possibility of you sending more business their way.

Our management company is supposed to start looking in to what would be involved in notifying mortgage companies about delinquent dues and let us know. I'll try to remember to follow up here if they find anything.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here