1-888-800-1042
Kaman Cusimano Logo

Condo | HOA Lawyers

What to do With Bank and Other Third-Party Foreclosures

When a foreclosure is first initiated by a bank or some other third-party, the association has three choices:

  1. Do nothing and hope that the foreclosure is actually completed and that the entity foreclosing actually has a lien superior to the Association;
  2. Monitor the foreclosure internally; or
  3. Send the file to an attorney to protect the association’s interests.

A policy of doing nothing could be a potential breach of a board member’s fiduciary duty, especially if the result of the policy would be to allow third parties to foreclose out an association’s superior interests. The Condominium & HOA Law Team will monitor the foreclosure to make sure that the foreclosure is actually completed timely, will keep the association advised of the date of the confirmation of sale so that the association can start assessing the new owner, and will ensure that any transfer fees are properly charged and collected.  You can learn more about bank and third-party foreclosures, and our strategy in this white paper.

Categories

Three bars icon gold

Recent blog Posts

Three bars icon gold

Partner Nicholas Meinert Presents at Northern Ohio CAI Chapter on the Corporate Transparency Act

On June 14, 2024, Partner Nicholas Meinert presented to the Northern Ohio Chapter of the ...
Read More →

Partners Dan Miske and Lydia Chartre presented at Wisconsin’s Chapter of CAI on reserves and lending

On May 23, 2024, Partners Dan Miske and Lydia Chartre presented a webinar for the ...
Read More →

Strengthening Community Associations: The Vital Role of a Comprehensive Assessment Recovery Policy and Procedure

Community associations are founded on principles of shared responsibility and collective maintenance. From maintaining common ...
Read More →

Partner Nick Meinert presented at OLCA’s Spring Conference

Partner Nicholas Meinert gave a presentation at the 2024 Ohio Lake Communities Association’s Spring Conference. ...
Read More →