Foreclosure: Board's responsiblity?

Hi All,

One of our owners, family of husband, wife and 2 kids, is going to go thro' foreclosure. They tried to sell the condo but no luck. The husband lost the job and they are into financial crisis but they have been paying the monthly maintenance on time (very responsible owners). They have not yet moved out, we have been told that they will own the unit till the end of Jan and they will try to sell the unit before it is owned by bank. As of now, they have rented an apt in the town and are moving the items slowly.

As a board member, I would like to know what are the things I should be aware of when a unit is going thro' foreclosure. Who will pay the maintenance fee once it is banked owed? How long is the process of foreclosure and what are its consequences upon other units?

In our by-laws the sections says:

SECTION 4. FORECLOSURE: In the event of foreclosure proceedings against a Unit Owner, the Association, on behalf of one or more Unit Owners, shall have the right to redeem from the mortgagee for the amount due thereon, or to purchase such Apartment Unit at the foreclosure sale for the amount due. In the event that the Association has so acted on behalf of all Unit Owners, it shall have the right to assess all Unit Owners for the costs thereof, in proportion to their interest in the Common Elements. This is subject to the limitations herein elsewhere set forth.

-Thanks

Take Joe's advice and take nothimg fot granted. Assert the Regimes position as far a who gets paid first upon sale of unit. If you have to lien the property, do it as quick as you cam. Chances are the Regime will come out with red numbers when all is settled, your documents are saying the Board has to recoup this money from all other owners. I have not seen this happen, but not because it can't happen. Lot's of times it is just accounted for as a loss and life goes on. You will not know where you stand until the property is foreclosed. Some banks holding mortgages may catch up that negative figure and will pay assessments like all do. I have read of some mortgages holders that resist doing this. If this happens you may be forced to lien this mortgage holder. Big mess. Remember the Saving and Loan crises, condos suffered badly, and good boards are becoming more and more important each day.