SC Condo/foreclosure opinion

To all,
The following was recently posted on the SC HOA and Condo website, highlighted in yellow just to the left, apparently only in SC. However, the information is or could be helpful as a knowledge base for many folks.

Credits for this information is at bottome of page.

South Carolina Community Association Law Blog published a new entry entitled "Assessments Due Upon Foreclosure" on 4/13/2009 9:47:52 AM, written by Ryan McCabe.

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Assessments Due Upon Foreclosure

Section 27-31-210 of South Carolina Code of Laws annotated provides: Where the mortgagee of any mortgage of record or other purchaser of an apartment obtains title at the foreclosure sale of such a mortgage, such acquirer of title, his successors and assigns, shall not be liable for the share of the common expenses or assessments by the co-owners chargeable to such apartment accruing after the date of recording such mortgage but prior to the acquisition of title to such apartment by such acquirer."

&! nbsp;Thus, a lender who forecloses on a property or a buyer at a foreclosure sale does not need to start paying association assessments until the lender or purchaser obtain title to the property, which does not occur until the end of the foreclosure process. This means that associations are usually unable to collect any assessments while a property is being foreclosed, which sometimes takes six or more months.

Associations have an incentive to advocate changes in the law that would either impose an obligation to pay assessments at an earlier stage or attempt to shorten or accelerate the foreclosure process. However, in light of the current economic situation and established foreclosure procedures, the likelihood that any meaningful changes would be taking part any time soon is small.

This site and any inform! ation contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.

Permalink: sccommunityassociationlaw.com/2009/04/13/assessments-due-upon-foreclosure.aspx

Mary,
I am sure the results of the mojority of these play out as you discribed.

However, The association, under some CC&R's can lien the property and maybe move up a tad in the ranking of proceeds. Also, the association is obligated (according to me), to make a continuing effort to collect arrears and penalties, and fines. I would imagine that effort can only consist of a monthly notice of an undated bill, but, that may be enough to get some money back, and if you don't and for some strange reason there is some money you can recover, you want to be in line and get all you can.

Mary,
I am sure what you say happens rountinely all the time, and I don't advocate the association going into the real estate business.

I was referring to if for some reason any money is left, or for some reason the Board is questioned about not making an effort to collect the money, or the judge may want to see a list of creditors. Or you can always file a small claims for $10.00, prior to forclosure, in small claims court, all to cover the boards position in regard to this bad debt. It probably makes sense in most cases to have a bad debt line item and adjust your assessments to cover the figure, but that only comes when the debt is found to be bad, which will be at foreclosure, I expect.

Terry -

Why don't you stop trolling your spam-like posts here. You take a thread that's almost 2 years old and "adapt" it's content to fit your "cause".

Do you think anyone will take your google sites sub-domain website seriously?

I, for one, do not. It's just as bad as late night TV ads for ambulance chasing attorneys . . . .