A Milwaukee association took possession of a unit through foreclosure, but could not rent out the unit because of its condition and could not sell it because of a large mortgage. After the property is vacant for several months and the lender did not start a foreclosure, The Condominium & HOA Law Team brought a quiet title action against the lender. The purpose of this is to either get the lender to take a deed for the property or have the court order the mortgage to be quieted (wiped out) on the title. In this particular case, the lender did nothing and the court ordered the mortgage removed from the title. The association was able to fix up and sell the property recovering both the debt owed to the association and a profit.
Lesson: An association does not have to sit on a property that has a mortgage. There are options and ways to get a new paying owner into the property.
Hiring an attorney who specializes in condominium law is crucial to helping your association succeed. The Condominium & HOA Law Team has pioneered the use of quiet title actions in Wisconsin. Our team is adept at developing and implementing strategies to help associations combat first mortgages.
