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Has anyone worked with a mortgage company to reduce condo debt?

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Hi, I have recently begun volunteering for my Condo Board. We have terrible problems with delinquency at my community. We have owners in the many thousands of dollars in debt and it has been going on for years. I have heard that many condo boards will send letters to mortgage companies that are doing business with delinquent owners. I have heard if we advise the mortgage company that their customer is in severe debt to the condo association and that it has been going on for years, that the mortgage company may take this information into account if the loan is a boarderline foreclosure... Do you know anything about this practice? Do you know of any websites that have example letters? Thanks

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Comments

Outboard has been working on delinquency collections. You may want to check with an attorney to see what can be done in your state. There are also collection agencies you can work with. The first step is to review the condominium documents & bylaws to determine if there is a section detailing when the fees are due and what the policy is regarding late fees. Of the collection practices don't work, the board can put a lien on the property. If it's a federal low income loan, if you notify the mortgage company, I understand that the mortgage company will pay what is owed inclusive of attorney fees, late fees & any other charges related to the collection of the past due amount. You have to show collection efforts have been made-initial late notice, 30 day notice, etc. The mortgage information is available through your local deeds office.
Posted @ Monday, February 01, 2010 7:46 AM by Danna
In addition to Danna comments you may do a payment program (check Assoc. Docs. for applicable procedures) to seek payment from the delinquent owners.  
 
You may contact Association Financial Serviceswww.associationfs.com or 1-866-736-3069 they will help you and provide guidance on how to proceed with your association problem.  
 
Posted @ Tuesday, February 02, 2010 12:48 PM by Jose E. Humaran
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