When I am working with Buyers in the Chicago and its South-land marketplace in Illinois, who desire to make offers on foreclosed Condominiums, I have to have the important conversation with them defining what "AS-IS" really means?
Condominium Associations find themselves powerless to collect assessments from the previous owners who have walked away from ownership of the condominium, resulting in them pursuing collection of past due assessments from the New Buyer. Doesn't this just sound unethical and unfair? It absolutely frustrates me to have to prepare my Valued Buyers, they will need to in addition to the price they pay for the Condominium, budget for all or a significant portion of the past due unpaid assessments, inherited from the previous delinquent owner.
What makes this proposition so silly to me is the fact whether a foreclosure or a regular sale, whenever the real estate taxes are paid in arrears, the Buyer is given a credit at closing for what the taxes were when the Buyer did not own the property? Should this same rule apply to the Banks who foreclose on the mortgage debt owed? Why aren't the Banks required to pay the past due assessments, or give the New Buyer a credit towards payng them as part of the transaction? Why? Because there is a political force operating behind the scenes in real estate. Accomplishing what is fair requires Public presure, and enough well meaning Political Leaders to do what is right for the Public they serve.
Case in point, when I-57 was constructed back in the early 1970s, it intersected with I-294, with no access to either expressway until 2015. Look at how many decades it took to politically correct a daily slap you in the face commuting irritation?
Below, is an update on the Illinois Associaton of Realtors efforts to protect Condominium Buyers from paying excessives past due assessment charges. I personally feel legislation requiring a Buyer to pay any pass due assessment is a very unfair compromise, and another example of the real estate industry allowing the Banking industry to hold real estate hostage? Please let me know your valued thoughts?
"UPDATE ON IAR INITIATIVE-COSTS ON BUYERS OF FORECLOSED CONDOS
As you recall, the IAR-Illinois Association of Realtors, put a huge effort behind passing legislation to curb excesses in charges that were heaped upon unsuspecting buyers in the sale of foreclosed condominiums. Due to our relentless lobbying the bill passed both the House and Senate in the 2014 session but unfortunately was vetoed by then Governor Quinn. This spring the IAR-led coalition is taking a different approach and is simply trying to require condominium associations to file an itemized statement of costs that they are owed at the time of foreclosure. Believe it or not, the condominium groups are opposing even this measure of transparency. Meanwhile, they are pursuing legislation to still require buyers to pay a large portion of past due costs and to further require lenders to pay additional costs which go beyond what the associations can collect now. In short, they oppose our bill and we oppose their bill. Conversations are to continue but the prospects for an agreed bill this year seem dim right now."