FrankH1 (Florida)
Posts: 14
Posts: 14
Posted:
Can a lien be placed on a property for none payment of the regular assessments when the foreclosure is in process or even after the property is foreclosed on?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Bank foreclosures
Started by FrankH1 • 4 replies • 1092 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
yes, if you follow the laws of the state and your by-laws for due process, notifications, and reasons (some states don't allow all reasons for liens). However, you need your ducks in a row, and be sure the correct owner has failed to pay assessments: you can't lien the BANK's home because you failed to collect from Bob Jones. You can lien if the bank hasn't paid, however.
RobertR1 (South Carolina)
Posts: 5,164
Posts: 5,164
Posted:
Brian,
How can you lien an owner of a home, the owner goes in foreclosure, the home is foreclosed (sold), a notice has to be given to the effect this process is taking place, a time is set for all claims to be made, the transaction takes place, a new owner take deed, and the old owner is released, then at this date a lien can be filed? Who are you going to file against? The new owner doesn't owe the money.
I even doubt you could go back and sue the old owner for back assessments at this point.
Filing the lien, I think, just gives you legal interest in the property, and you then are placed in a priority position upon settlement. Up to that time, the Regime can try to collect anything owed in any way legally possible, up to time of closing. When the new owner gets deed, the new owner is responsible from that date. At times, a bank or some such, they are then responsible for the current assessments from time of closure. If a bank sells property the bank is responsible up to time of sale, then the new owner is responsible.
In the Savings and Loan crises of the late eighties, some Savings and Loan Companies went bust and then became in arrears or just flat refused to pay assessments. Of course the courts were full of these cases, but each has to be treated individually and as far as I know, many association had to accept what they could get through the courts. Lots of associations, as now, didn't have the knowledge or drive to even enter into the process, and many suffered. That is what we are seeing now as far as I can see.
How can you lien an owner of a home, the owner goes in foreclosure, the home is foreclosed (sold), a notice has to be given to the effect this process is taking place, a time is set for all claims to be made, the transaction takes place, a new owner take deed, and the old owner is released, then at this date a lien can be filed? Who are you going to file against? The new owner doesn't owe the money.
I even doubt you could go back and sue the old owner for back assessments at this point.
Filing the lien, I think, just gives you legal interest in the property, and you then are placed in a priority position upon settlement. Up to that time, the Regime can try to collect anything owed in any way legally possible, up to time of closing. When the new owner gets deed, the new owner is responsible from that date. At times, a bank or some such, they are then responsible for the current assessments from time of closure. If a bank sells property the bank is responsible up to time of sale, then the new owner is responsible.
In the Savings and Loan crises of the late eighties, some Savings and Loan Companies went bust and then became in arrears or just flat refused to pay assessments. Of course the courts were full of these cases, but each has to be treated individually and as far as I know, many association had to accept what they could get through the courts. Lots of associations, as now, didn't have the knowledge or drive to even enter into the process, and many suffered. That is what we are seeing now as far as I can see.
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
It think all of this may hedge on a particular state's laws on foreclosure. I recently posted an article regarding procedures in AZ which states that alot depends upon whether or not it's a first mortgage or second mortgage being foreclosed. It behooves all HOA boards to become aware of the foreclosure procedures in the state in which they live. Sometimes it's not cost effective to try and recoup delinquent assessments from a member who is being foreclosed upon by a bank or mortgage co.
RobertR1 (South Carolina)
Posts: 5,164
Posts: 5,164
Posted:
You got that right Mary and I am sure you are aware how difficult it is for the Board to decide they have to write off debts (if your documents for condos allow you to even do it in this foreclosure scene). Owners scrutinize this kind of stuff carefully, me included. I try to insist they follow the documents with no adjustments, the Board tend to treat each case individually and then if you are allowing the Manager to do the process there is another variable.
Woe is me!
Woe is me!
🎯 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