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Can condo association collect condo fees on unit in foreclosure?

Posted on Sat, Mar 23, 2013 @ 08:46 AM
  
  
  
If our condo unit is in foreclosure (Illinois), and we are current on the assessments, can the condo association charge legal fees? Our condo association was named as a defendant along with us on the Mortgage Foreclosure Summons since "it may have some interest in the subject real estate by virtue of unpaid assessments or other charges" and "its interest in the mortgaged real estate is sought to be terminated and alleged to be subordinate to that of the plaintiff.” We are current on our assessments and intend to be throughout the foreclosure process and the condo association has no lien on our unit. I received my assessment bill and we are being charged legal fees in connection with the foreclosure. Can they continue billing legal fees if we remain current on our assessments? The foreclosure can drag out for 2 years and I'm afraid we will be billed monthly legal fees until its over.

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COMMENTS

I would talk to an attorney in Illinois. Our association in Illinois has not charged any resident in foreclosure in the past twenty five years and these filings are rather common. The association is always named as defendant and when they are not it is good for the association. We forward them to our attorney and make records of them for our associations records. Our attorney does not charge for his services for this to our association. The nickel and diming of residents by some management companies and attorneys has got to stop. They now look as residents as a profit center with $75 charges for an appraiser to get information and other mullarkey. I hope you things work out for you.

posted @ Saturday, March 23, 2013 9:35 AM by Mark


Unless proven otherwise: 1) the court system is only made for those with deep pockets and 2) condos in Illinois are under the control of organized crime. 
So all you guys in Illinois: your normal dues get taxed 5 to 33 percent on the skim to the mob.  
Another reason not to borrow money to buy a condo.

posted @ Saturday, March 23, 2013 10:41 AM by john_mastro


Yes, If the bank is holding the mortgage, they are responsible for the condo fees.. Our BOT had a lien on the property and received all back dues at settlement.

posted @ Saturday, March 23, 2013 1:59 PM by Bill Bondar


Once the foreclosure is complete, the bank mortgagor is now the owner and pays condo fees same as any owner.

posted @ Saturday, March 23, 2013 4:23 PM by nan


Based on your article, the bank is foreclosing on your condo but you have not filed for bankruptcy. My comments would be null and void if you were entering bankruptcy. 
 
Foreclosure by one or more of your creditors merely indicates that you have been unable to meet the payment schedule established by one or more of your creditors and they are seeking to repossess your real property so that they can turn around and sell it to pay your debt. The HOA should only be considered a creditor if you were behind in your monthly assessment or did not pay any assigned fees such as the legal fees. 
 
To answer your question, yes, a HOA typically has the right to assign the legal fees they incurred as a result of being summoned to your foreclosure proceedings. 
 
Foreclosure proceedings are usually dependent on state and local laws, as is the right of a HOA to bill you for legal fees. Of course the governing documents for your HOA could also come into play. You were giving good advise by Mark, engage an attorney. 
 
My question back to you is how you could allow this to proceed to foreclosure? If you are able to maintain your monthly HOA assessments, you must have some sort of income. Have you tried to renegotiate your loan payments?

posted @ Saturday, March 23, 2013 6:04 PM by Ron-NC


Hmm,, no moderator...  
As a test I made over the last few days some crazy posts to test the hypothesis that there was some rational editor . Apparent DOA or AWOL. End of test phase.

posted @ Sunday, March 24, 2013 8:47 AM by john mastro


Here's my opinion on how this would work in Florida, since that's where I live and practice law. My associations charge the unit owner for defending a mortgage foreclosure action regardless of whether the unit owner is current on assessments or not. Condominiums have a statutory lien on the condo units. When a mortgage foreclosure is filed, the association is forced to protect that interest in the property against another lien holder. While the attorney's fees usually aren't much, the fact that the association has to incur any legal expenses at all is due to the actions, or inaction, of the owner (failing to pay the mortgage). Admittedly though, there is no appellate authority in Florida one way or another on the issue.

posted @ Tuesday, March 26, 2013 12:30 PM by Brandon


You can only "TRY" and collect unpaid dues after the bankruptcy. Anything before said B.K. is not allowed. Now good luck is doing so. 
The B.K. has been satisfied as of 11/11 
We are now 1.5 years into this and as of Oct. 2012 the unit has now been foreclosed on. We are still waiting and hoping that we gain something back out of this unit. you see this has been going on since around 2010 and we have lost all this money on an empty unit. Good luck

posted @ Thursday, April 11, 2013 10:42 AM by s


The auction is so important because of when any Detroit foreclosures do not get sold in auctions they are now real estate owned properties.

posted @ Friday, May 09, 2014 12:08 AM by Foreclosed Homes for Sale in Detroit


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