Condo Association Management Blog

Bank awaiting sale of foreclosed condo unit until market rebounds

Posted on Fri, Jan 16, 2015 @ 08:00 AM

Tags: Florida Condo Association, Board of Directors, Condo Management, condo law, Rights, Rules and Enforcement, HOA Board, HOA, Foreclosure, HOA Management

Foreclosed condo unit in Florida HOA being held by bank until market recovers 011615  resized 600

My Florida HOA, Property Management Company, and attorney had foreclosed on a condo unit. They have released the bank of any responsibility, and the previous owner still owes the bank. The bank has been waiting to sell the condo unit until the market gets better, and have been refusing all offers.

Can our HOA get out of this in any way, other than renting the condo unit?

Rules on pricing condo units foreclosed by the Condo Association?

Posted on Sun, Dec 21, 2014 @ 08:00 AM

Tags: Property Management, Board of Directors, condo law, condo questions, Bylaw, Rules and Enforcement, condo association board of directors, Liens, Foreclosure, Condo Act, back assessments, Texas Condo Association

Condo Association has questions on pricing foreclosed  condo unit 122114 resized 600

I am a new Board member in a Texas Condo Association. Over two years ago, the Association took the deed to one of the condo units for nonpayment of dues.

Now, the Board wants to list the condo unit for sale. The Condo Association Property Manager is saying that we cannot price the condo unit at market rate, but at a price equivalent to out-of-pocket expenses, ostensibly because it might appear the Association foreclosed in order to make a profit.

Is the Condo Association Property Manager correct in their judgement? Is the Condo Association limited in pricing, even after the duration of two years?

HOA and bank are not in agreement on foreclosure of condo unit

Posted on Sun, Nov 30, 2014 @ 08:00 AM

Tags: Bankruptcy, Condo Association Management, Boards, Florida Condo Association, condo law, Rules and Enforcement, HOA Board, Foreclosure, HOA Questions, HOA Management

HOA and bank not in agreement on foreclosure of condo association unit 113014 resized 600

Our HOA holds the title and had foreclosed on one of the condo units in our association. The previous owner has been gone for about one year, and still owes the HOA $36,000 and the bank $75,000.

While the HOA has foreclosed, the bank has not and refuses to sell. The result is that the HOA is losing $6,000/year. What, if anything, can be done?

Who is responsible for condo association fees on foreclosed units?

Posted on Thu, Jun 19, 2014 @ 09:08 AM

Tags: Coverage, Property, Bankruptcy, Boards, Developer Transitions, Condo Assessments, condo law, condo, Foreclosure, Delinquencies, Collections, Condo Act, Freddie Mac, Ohio, HOA Collection Firm, Ohio Condo Association

condo unit bank owned 061914 resized 600

Our Ohio condo association has a foreclosed unit that sold at auction on 2/21. The bank was the buyer. We initiated billing for condo association fees and they made one payment, but it was short of the amount owed. The bank then transfered control to Fannie Mae. A Fannie Mae representative contacted us for billing info and told us we would receive timely payments every month effective 4/23. We provided the data and they forwarded it to their agent, which turns out to be the bank that was initially in control.

We have still not received any other payments and it is currently 3 months behind. The property was listed and has sold. We don’t know a closing date yet. We are concerned that once the new buyer closes we will never see our past monies from the bank or Fannie Mae. Can we do anything to bind the closing pending full payment of the monies owed to us. We are already 18 months short on this property.

How to transition from a foreclosed condo owner to a new owner

Posted on Tue, May 27, 2014 @ 08:22 AM

Tags: Buying, Assessments, Bankruptcy, Condo Assessments. condo association management, Budgets, Board of Directors, Condo Assessments, condo law, condo, Foreclosure, Illinois, condo rules, Delinquencies

condo assessment fee transition during new ownership 052714 resized 600

A condo owner was foreclosed on the 15th of the month. They had paid that month's assessment fee and were in good standing. The new owner who bought the condo unit at auction does not take possession of the unit until 30 days after a deed is issued, which is a week after the sale.

Should the original owner receive a refund of half a month? If so who should pay the second half of the current month assessment and going forward until the new owner takes possession? The condo association is in Du Page County, Illinois.

Condo association dealing with multiple foreclosures at once

Posted on Wed, Aug 14, 2013 @ 10:18 AM

Tags: Bankruptcy, Foreclosure

I own a condo unit in a small 22 unit association. We have 6 non paying units, all have liens on them. According to the legal firm we used via our property manager, three units are in foreclosure, but not completely foreclosed upon by the banks, therefore we receive no maintenance fees from the owners nor the banks. The legal team wants money to push the banks to foreclose on the properties, money we don't have. So we are stuck between a rock and a hard place. I'm sure we are not the only association to be dealing with this issue. We would love to get the units foreclosed on and sold so we could get paying owners in them. Any thoughts of how we can push this further? Haven't found this specifically mentioned here, unless I'm just missing the category.

Must condo association foreclose on delinquent owner within a year?

Posted on Wed, Mar 27, 2013 @ 08:48 AM

Tags: Bankruptcy, Foreclosure

I have read a report from an attorney's blog that the condominium who takes a unit owner to court to foreclose has to foreclose within one year and take the lien off. I was in this position but I had provided copies of all my payments. The Board was not maintaining their ledgers therefore I had to prove I had paid them. I became ill (disabled) before the trial which I called for; doctor sent letter excusing me from trial then..I have gotten worse. My payments were never brought up although seen. It's been since 2009. Do you know the statue that supports this claim from the other attorney? Thank you.

Where do condo fees go when unit gets foreclosed on?

Posted on Tue, Aug 21, 2012 @ 09:06 AM

Tags: Bankruptcy, Foreclosure

What happens to condo owners that are paying their dues, but units go into foreclosure? We are a 12 unit condo building where 4 units are in foreclosure.

Do Freddie Mac/Fannie Mae rules control condo association dues?

Posted on Wed, May 2, 2012 @ 01:49 PM

Tags: Board of Directors, Foreclosure, Freddie Mac

We are a 40 unit association run by a volunteer board. We spent quite a bit of money with a lawyer regarding our FHA review and have finally received FHA approval again. Recently, our condo president was told that if a condo is repossessed, we can only ask for 0-6 months in assessment fees due to Freddie Mac/Fannie Mae guidelines. In the past we have been able to receive most of our money back, either from the bank or from the eventual individual buyer. Does anyone have any information regarding this? I sent emails to our lawyers but haven't heard anything and am sure they expect me to make an appointment and pay for their face-to-face consultation as well as their reply. I am hoping someone has researched this question. Thanks!

Condo associations with foreclosed units are going out of business

Posted on Wed, Jan 4, 2012 @ 08:01 AM

Tags: Bankruptcy, Foreclosure

Prior to July 2007 to voluntarily terminate a condo association required 100% vote of owners.  The law changed to now require only 80% vote to start termination which continues unless 10% of vote objects. This is now being applied retroactively & means that a big business bulk buyer can relatively easily force unit owners not in foreclosure or upside down on their mortgage to sell their units at rock bottom prices. They work with banks on mortgage forgiveness which is attractive to some. How did this law get passed? Were there objections to it? What can be done to prevent profiteering bulk buyers forcing unit owners to sell at rock bottom prices then aquiring all the units & turning the complex into apartments which are currently valued at 2-3 times the price of distressed condos? This has already happened in Orlando & Tampa (Arbors at Branch Creek , & is starting to happen at Lansbrook Village in Pinellas). How can unit owners who purchased their units prior to the law change be forced to sell under the new 80/10% rule?  They purchased under the old 100% vote law.