Have you ever heard of a condo association foreclosing on a condo and then buying it with dues of the owners?
We are having something like that going on here and I do not know who to go to for help. I can't help but think that this is wrong. Have rules changed....if they have, I feel that human decency has eluded us.
I have great concern for the folks that lost their unit even though they were trying to work out a payment schedule with the association.
Wowser! I haven't heard of this before but this market is all new stuff. We do have some condos here where there is some concern about owners ability to pay and the amount of past due fees. Buyers get a little antsy about that (understandable) but I have not heard of associations buying up the units of past due owners. I would be interested in hearing the legal side of this.
By their charter, and allowed for by most (all?) state law, an HOA is a legal entity with most of the same rights as a taxing authority. This usually means they automatically have a superior lean on the property (secondary to the taxing authority already in place), and have the right to ultimately foreclose to satisfy the unpaid charges.
Owners are aware of this through receiving and agreeing to the HOA Bylaws and Covenants received at closing. Why should the performing owners carry the burden of the non-performing owner(s)?
Harsh, but the reality of living in a mandatory HOA. The simple solution is to not buy property subject to an HOA.
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