An condominium owner stopped making mortgage and homeowners association payments. After almost two years the bank foreclosed and started making the monthly homeowners payments. Even though the payments are made monthly now, the unit is still $22,000 in arrears. The bank has now listed the property for sale. Our association has been trying to collect from the former owner, but he is broke. Can the association get our back dues if the unit goes into escrow?
1 Answer from Attorneys
The AOAO should have been notified of the Foreclosure and should have intervened at that time. The AOAO needs to immediately record/file its lien on the property and retain an attorney because the AOAO lien rights after non-judicial foreclosure is going to be much more complex than a simple answer on LawGuru. Aloha, Jon A. Zahaby, Esq.