Foreclosed Condos In Chicago Il
March 6th, 2010
Foreclosed Condos In Chicago Il
Question: How can a lien for back associations fees be obtained on a foreclosed condominium unit?
The unit across from ours has gone into foreclosure. The owner is in arrears on his association fees. Can we (the condo assocation) get a lien on the property for back association fees? Property located in Chicago, IL
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Answer: Yes you can. However, the mortgage will take precedence over your lien, so if the house is worth less than the mortgage, you won't get anything. You will only get something if the bank sells the condo for more than the mortgage, which may not be likely if foreclosure is necessary.
There are companies that will do this for the HOA. One that I have used is Sunrise Assessments. www.sunriseassessment.com
You can go to the office of the county "Recorder" (or whatever it is called for your county) and find out what mortgages and other liens are already on the property, as this is public information. Then you can compare the total of all of those with your estimate of the condo's worth to see if there is any hope that the HOA would get anything. Note that if there are IRS liens against the property, they also come before your HOA lien.
Note, however, that my experience has only been in California. Suggest you contact Sunrise Assessments and see if they can recommend someone in Illinois.
One small silver lining: Once the bank actually forecloses and becomes the legal owner, they will become responsible for the HOA fees from that point forward (but not for anything before that point). You should not have any trouble collecting from them going forward, at least we didn't in our case, we just contacted the bank's repo department and let them know, and there was no problem. If they don't pay for some reason, you could always file another lien, which any buyer would then have to satisfy.
Bottom line, you are probably not going to get back what you have lost so far, but once the bank takes over you should be able to start collecting again.
823 S. Western #4, Chicago, IL 60612
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