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

6 Tips to Help Maintain a Positive Perspective in Your Homeowners Association

Among homeowners association managers within our company, we have made training an emphasis. We attend conferences, seminars, classes, etc., so

Nuisance?

A nuisance is much like any other alleged violation of an association’s Governing Documents in that there must be a

Assess for Capital Improvements? Borrow? Do Both with “Split Funding”

A reader writers: Since becoming a condominium, our building has needed a seemingly endless series of repairs, most of which