Condo Association Management Blog

In a recent ruling, it was found that a condo association’s filing of a lien seeking to recover common charges against a person who had filed Chapter 13 bankruptcy was an intentional violation of the automatic stay provisions of the US Bankruptcy Code (11 USC 362.) 
 
 
 
The board of managers of a townhouse complex knew of the bankruptcy filing, and did file a motion for Relief From Stay with the bankruptcy court, seeking permission to name the debtor as a defendant, along with the debtor’s mortgage company, in order for the association to foreclose on its lien. The U.S. District Court for Eastern N.Y. overturned the bankruptcy court’s prior decision supporting the condo association and ruled that the debtor’s possession of the property gave her an interest sufficient to invoke the 362 stay, and therefore the underlying lien that the association was seeking to foreclose on was void, since it was placed on the debtor’s property after she had filed her Chapter 13 petition. 
 
 
 
The lesson learned is that a Motion for Relief from Stay should have been filed by the condo association before they sought to file the lien, regardless of their actions in later seeking relief from stay to enforce the lien. (Ford v. Board of Managers of Cameo Townhouses, 2009 US Dist., Lexus 13124, E.D.N.Y., 2-18-09.) 
 

If the homeowner's association (HOA) has written, recorded covenants and/or bylaws that require the payment of dues, liens can be filed for non-payment of those dues. The laws regarding HOA liens vary widely from state to state. I suggest that you see a real estate attorney in your area to discuss your particular situation. Or, better yet, try to work out a payment plan with the HOA. That will save you and the HOA a great deal of stress and money.  
 
 
 

Our association has just recently told us that we will be charged 20.00 a week or 7 days extra on our dues. so that would be an extra 80.00 buck a month to the homeowner. I feel this is very illegal, but the board members tell me every business does it that way, bullshit! My bank does not charge me but one late fee on my mortage payment per month. Can some one tell me if this is actuall legal for these dumb asses to do. I haave never heard of someone being charged a late fee every seven days frome any where I have ever lived in united states, it actually feels they are trying to make up for money being spent on the yards being cut where no on lives at. thank you very much. Let me know waht you think at my e-mail adress bama004484@yahoo.com and I live in fort wayne, indiana