Category Archives: Liens

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

Read more

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In Moon Lake Condominium Association v RBS Citizens, Case No. 323476 (Michigan Court of Appeals, November 12, 2015, unpublished), the Michigan Court of Appeals held that junior lienholders, such as condominium associations, are not entitled to notice that surplus funds were collected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

Read more

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

Introduction Community associations are often faced with the challenge of collecting unpaid assessments from delinquent owners. Initial collection efforts typically involve sending demand letters, suspending recreational facility privileges (if permitted by the documents), and suspending voting privileges (if permitted by the documents). When these efforts are unsuccessful, community associations are left with no choice but to record a lien against

Read more

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

Read more

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

Read more

STRIPPING COMMUNITY ASSOCIATION LIENS IN BANKRUPTCY: IS YOUR COMMUNITY ASSOCIATION AT RISK?

As the housing market continues to slowly recover from the foreclosure crisis in Michigan, and other areas of the country, many community associations are still facing significant challenges with unit owners who file for personal bankruptcy.  Numerous unit owners are beginning to utilize an old technique, previously used primarily against second mortgages and other junior liens, against community association liens. 

Read more
Recent Entries »