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SteveM9 (Massachusetts)
Posts: 3,699
Posted:
We have someone many months behind in condo fees. I went to the web site for our registry of deeds to see if the person was going through a foreclosure or something else and I noticed in his mortgage paperwork it included this info:

Quote:

"F. If Borrower does not pay condominium dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become addition debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the note rate and shall be payable, with interest, upon notice from lender to borrower requesting payment."


Does this mean I can notify his lender that he is behind in his dues and they will add the late dues to his mortgage and cut the condo association a check? Or does it mean something else?

Steve
MaryA1 (Arizona)
Posts: 7,043
Posted:
Steve,

I believe the clause is in most mortgages nowadays and I think it only pertains to the mortgage co taking over ownership in the event of a foreclosure. At least that's what I've heard. I've not heard of any cases where the mort. co has paid assessments on a property they do not own.
KarenT (Washington)
Posts: 250
Posted:
Mary is correct - most mortgages/DOT/PUD riders have this language. We recently contacted the lender of one of our homeowners and they indicated they do not pay assessments.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Darn, for a moment, I thought I found the solution to all my problems. (wink)

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