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Condo association forced to work with bank's foreclosure partners

  
  
  
  
  

I am a Board President in a small 52 unit condominium development located in New Jersey. The court appointed a company to provide rent receivership services on a unit that is in foreclosure in the community. The Board did not approve the appointment and does not want to work with this particular vendor. She has since presented a bill for $750, which is completely arbitrary. She never presented a fee schedule and again, we did not sign a contract or agree to this process. Our attorney says to pay her or be sued. Does anyone have a similar experience and is this our only option? It seems like extortion to me and I am totally against paying her.

Comments

To address this question, the first item is "who owned the unit that is in foreclosure?"  
 
If the unit was foreclosed by a bank due to mortgage default, then the agent works for the bank. The agent is not a vendor for the condominium and expenses are the obligation of the bank. That vendor would be responsible apparently for paying the condo assessment and have the right to represent the bank ownership as an "owner" at meetings of the condo and to vote on their behalf at member meetings. 
 
If the unit was foreclosed by the condo for non-payment of assessments, this would be a different issue. The court has stepped in to appoint per the court ruling a vendor to represent the condo in affairs of this unit.  
 
Once this distinction is identified, then answers can be provided with greater clarity.  
 
Posted @ Tuesday, January 03, 2012 7:49 AM by Nancy Jacobsen
Just because the court appointed a company does not mean that they can charge anything they want. Go to other vendors to ask what they will charge for similar services. Also ask the court-appointed company to justify the amount they are asking in relation to the services they are providing, and get their fee schedule for future services. Then negotiate with the them and / or go back to the court to ask for another vendor. Don't pay above the market.
Posted @ Tuesday, January 03, 2012 11:00 AM by JT
JT - first the inquirer has to clarify who owns the unit to determine who the vendor works for.  
 
If the unit is owned by a bank - the condo normally would have no obligation to pay anything for anything! The bank and its vendor would be obligated to pay their unit assessment.  
 
Need correct information!  
Posted @ Tuesday, January 03, 2012 11:08 AM by Nancy Jacobsen
Nancy,  
Good, my previous post assumes that their attorney is correct that the court-appointed receiver must be paid by the association, but by all means they can first consider ownership as you suggest. 
 
In general, the association should try to recover any fees and expenses from the foreclosure process. 
Posted @ Tuesday, January 03, 2012 3:09 PM by JT
this is why condo associations need to be aggressive and file the foreclosure before the bank. people if you can't afford to live in your units do your neighbors and yourself a favor sell your unit
Posted @ Sunday, January 22, 2012 8:07 PM by mg
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