Short sales and condo association fees

redcurlsMay 24, 2009

My DH is on the board of directors of a 78 unit condo association. All the board members are just ordinary volunteers who try to keep the bills paid and the property in good shape. We don't even have an office, per se. We have about four units that are in the process of being foreclosed. None of the banks have actually taken title to the units. An application to purchase has come in today for a unit that has an accepted sales contract on it for $25,000. We know the mortgage is around $90,000. No monthly maintenance has been paid in a year and no one is living in the unit. Normally when the title company asks for an estoppel letter, it asks how much is owing on the maintenance fees and/or assessments and sends us what's due after the clsoing, but it's usually only a small amount. This would total over $4000. We are wondering if the title company will be collecting all that back maintenance at this sale? By Florida law, a bank only has to pay 6 months of maintenance in a foreclosure, but these units are still titled in the previous owner's name. And, if so, WHO pays it? Thanks!!!

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triciae

You need local legal counsel. Laws vary by state. Doubt any of us here could give you a definitive answer.

Do we have a member of the Florida Bar in the house???

$25,000, huh? Ouch! I've been talking here on the forum about when I sold off condos originally priced at $125,000-$150,000 for $10,000-$15,000 during the S&L crisis. So, I'm not surprised to see these short sale prices. At the depths of these real estate cyclical bottoms it's hard to see that real estate will, eventually, rebound & reach new heights. But, it will...

Good luck...$4,000 is a lot of money for your association to lose. Volunteer condo boards work hard for absolutely zero recognition. Kudos to your DH.

/tricia

    Bookmark   May 24, 2009 at 7:57AM
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