Condo & HOA Collections

September 18, 2017

What is the Bank’s Obligation to Pay Assessments Under the Michigan Condominium Act After a Foreclosure?

MCL 559.169 allows for a Michigan condominium association to impose assessments against all co-owners in order to pay for the common expenses that are necessary to operate the condominium. When a co-owner fails to pay assessments, it places a strain on the condominium association’s budget for the year and unfairly results in an increased burden on the remaining co-owners as…
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November 1, 2016

Kevin Hirzel Collects $200,000 in Unpaid Condominium Assessments

On December 21, 2012, the City of Fenton acquired 52 undeveloped units in the Waters Edge Townhomes Condominium from the Genesee County Treasurer after a tax foreclosure sale. Pursuant to MCL 559.108, MCL 559.137 and the master deed, each of the units was assigned a percentage of value. Upon becoming a co-owner, by virtue of its acquisition of the units,…
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July 21, 2016

MI Court of Appeals Rules that Treasurer Cannot Foreclose on Common Elements

The Michigan Court of Appeals concluded that the trial court correctly set aside the judgment of foreclosure as it was void as a matter of law.  Specifically, the judgment could not have prospective application as it attempted to divide the limited common element garages from the units, which was not allowed pursuant to MCL 559.137(5).  Accordingly, Michigan condominium associations should…
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