Category Archives: Collections

Encouraging Lenders to Foreclose: Don’t let your Condominium and HOA units sit vacant without collecting assessments

Even though the real estate market is gradually improving, condominium and homeowner communities are still faced with instances where a delinquent member abandons their unit/home and stops mortgage payments, but the lender does not foreclose.   While condominium associations often believe they are “stuck” in these types of situations as the unit/home owner is uncollectable, and the lender will not foreclose,

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A Co-owner Filed Bankruptcy, What Now?

    Condominium associations are solely dependent upon the collection of assessments from its members for their survival and to purchase and provide the goods and services necessary for the maintenance of the project for the benefit of its members.  Thus, when a Co-owner files bankruptcy, there is an understandable feeling that all is lost.  However, that is not always

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MICHIGAN COURT OF APPEALS RULES THAT CONDOMINIUM ASSOCIATION IS NOT ENTITLED TO NOTICE OF SURPLUS FUNDS FROM FORECLOSURE SALE

In Moon Lake Condominium Association v RBS Citizens, Case No. 323476 (Michigan Court of Appeals, November 12, 2015, unpublished), the Michigan Court of Appeals held that junior lienholders, such as condominium associations, are not entitled to notice that surplus funds were collected from a foreclosure sale after the first mortgage of record was foreclosed on.  At issue in this case

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Which Type of Foreclosure, Judicial or Advertisement, is Best for Your Condominium Association?

Condominium associations are often faced with delinquent co-owners.  Unfortunately, the days are long gone when a Condominium Association is guaranteed to recoup all of the delinquent assessments plus attorney fees and costs from a sheriff sale of the condominium unit.  However, there are times when a Condominium Association should proceed to foreclose on its lien. The Michigan Condominium Act, MCL

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Can a co-owner withhold assessment payments if they are dissatisfied with their condominium association?

Condominium assessments are the lifeblood of any condominium association. A condominium association cannot function and provide essential services to co-owners unless assessments are collected. Unfortunately, dissatisfied co-owners often threaten to escrow or withhold assessments as a means to get what they want. Examples of situations where co-owners commonly threaten to withhold assessments and/or withhold assessments are as follows: A co-owner

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THE DIFFERENCES BETWEEN AN ADDITIONAL ASSESSMENT AND A SPECIAL ASSESSMENT IN A MICHIGAN CONDOMINIUM ASSOCIATION

As many new condominium co-owners are aware, the general operations of a condominium association are funded through annual assessments. MCL 559.169 sets forth the requirements for imposing assessments in a Michigan Condominium as follows: 559.169 Assessment of common expenses; contribution of co-owner. Sec. 69. (1) Except to the extent that the condominium documents provide otherwise, common expenses associated with the

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