Tag Archives: Collection

US District Court Rules that Prior Recorded Condominium Lien takes Priority Over Federal Tax Lien to the Extent of the Amount Stated in the Lien Notice

In Yarmouth Commons Ass’n v Norwood, et al., 299 F. Supp.3d 862 (E.D. Mich., 2017), the United States District Court held that a prior recorded condominium lien had priority over a federal tax lien but only to the extent of the amount stated in the lien notice. Facts The case involves a condominium unit within the Yarmouth Commons Condominium project.

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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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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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LEGAL UPDATE: HOW RECENT CHANGES TO PERIODIC GARNISHMENTS IN MICHIGAN AFFECT CONDOMINIUM COLLECTION PRACTICES

The Board of Directors for condominium associations are often faced with delinquent co-owners who fail to pay assessments or fines.  Typically, the Association seeks voluntary compliance with the co-owner to obtain payment, but sometimes the Association is forced to pursue a judgment against the delinquent co-owner.  If that happens, the Association may pursue collection efforts against the co-owner, including but

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Delinquencies, Collections and the Need for a Collection Policy

Community associations are nonprofit corporations, which are funded solely by dues/assessments paid by members. Unfortunately, when one member fails to pay his or her fair share, the rest of the members must make up the difference. As a matter of equity, it is simply unjust for the other co-owners—who typically have not done anything wrong or have no involvement in

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