Are HOAs Taking Advantage of Mortgage Servicers?

While Homeowner Association (HOA) liens for unpaid assessments typically have priority over second mortgages and other junior liens (because the HOA liens may “relate back to” the HOAs’ previously-recorded declarations), first mortgages receive special treatment in various states, such as Minnesota. Despite that special treatment, HOAs often demand payment of substantial bills by lenders foreclosing first mortgages. In addition to the regular monthly dues, the HOA bills may come riddled with line items for special assessments, attorneys’ fees, late charges, interest, and more that may not be the responsibility of the lender to pay. When the bills threaten to delay sale closings, lenders must quickly decide whether to pay the bills or delay matters, potentially losing sales, to challenge the HOA’s invoices.    Read the article…………..


Related Articles

Coping with Change in your HOA

Change can be tough, and while it makes some people nervous, it also provides HOAs with the opportunity to improve

Summer Safety

The summer season is a ready welcome every June given our Midwest winters. However, with the warmer temperatures are considerations

Proposed Legislation Requires Mandatory Service on the Board

Just kidding. Playing through the scenario, though, what if being “elected” to the board was like being called for jury