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Deadbeat owner getting ride on condo association's back

Posted on Wed, Nov 18, 2009 @ 05:39 AM
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I live in a 10 unit condo building. One of the unit owners for the past two years has not paid his condo association fees and owes thousands. My question is how can the HOA get him to pay his past due fees and assessments?

I believe that he is waiting for the condo unit to go into foreclosure, which is also not right. It is not fair that all the other owner are paying and not him. He is getting a free ride at our expense. What course of action can the HOA pursue?


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Comments

It's hard to say what might be the best course of action. I work in WA State and our laws allow for lien filing and the association can foreclose the property themselves in 90 days of non payment. If I were coaching you I'd say - read your documents, ask your attorney and move forward quickly.
Posted @ Wednesday, November 18, 2009 7:57 AM by Sherry Valentine
Basically, that is the best direction. I would urge you to move quickly. 
 
If this owner isn't paying their mortgage and is going to be foreclosed on, no matter how "unfair" it is they aren't paying assessments, that is the reality. 
 
The best plan may be to plan on not recovering those fees.
Posted @ Wednesday, November 18, 2009 1:39 PM by Joe Schuirmann
During the foreclosure lien/foreclosure process often the other unit owners already carrying the cost will have to pay high legal fees without possibly getting them back.  
 
Foreclosing on units is a very long process and costly. 
 
One the lien is filed the Association can move for foreclosure. Once summary judgement for foreclosure has been granted, a sale date is scheduled. So either the bank or another individual purchasing will end up with the property. In the current economy we are seeing a lot of units that go up for sale several times and no one bids. If the banks do own them they are refusing to pay. Oh, if the bank does take possession of the property due to foreclosure, the Association only gets the last 6 months of what is owed or 1% whichever is less. Normally that doesn't even cover the cost of collection and attorneys fees. 
 
If the unit is being foreclosed on by the bank, for a cash strapped association, it would probably make more sense just to wait for the unit to be foreclosed on and attempt to get fees going forward from the bank at that time and to write off anything before that time.
Posted @ Friday, November 27, 2009 1:56 PM by Joyce@thecondocommando.com
My comment involves Florida Laws and condominiums. However, often states have very similar laws to Florida, so you will definitely have to see what your applicable state laws dictate.
Posted @ Friday, November 27, 2009 1:59 PM by Joyce@thecondocommando.com
If hoa has a risk reserve account for you due to past experiences, can you request they use those funds for payment?
Posted @ Friday, March 12, 2010 12:50 PM by Gary Miller
If hoa has a risk reserve account for you due to past experiences, can you request they use those funds for payment? State of North Carolina.
Posted @ Friday, March 12, 2010 12:52 PM by Gary Miller
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