The risk of Foreclosure with HOAs

Many of our clients are surprised when we tell them that the Homeowners Association that runs their condominium complex can foreclose on their property for past due Association fees.  In Massachusetts they can foreclose even if you are current on your mortgage!   Many of the associations turn these properties over to an attorney to process and on top of your past due fees your balance will accumulate quickly with the addition of late charges, fines, attorney fees, interest, court costs and collection and enforcement costs.    Does this mean the association can foreclose on your condo and then sell it and keep all the extra for profit?  NO!   They will still be obligated to take care of any real estate taxes and municipal assessments as well as any first mortgage on the condo recorded before the date the assessment was brought.

What these associations and their attorney’s have figured out is that the bank will eventually have to pay off the association if the property is at risk of foreclosure to preserve their best interest in the property.  This puts the homeowner at a great disadvantage if they don’t have the right experts helping them in the sale of their home.

You can still sell your condominium as a short sale … so behind on your mortgage and condominium fees?  Give us a call today to find out how we can help!  We can refer you to our Massachusetts licensed attorneys too!