We received notice from their attorney in July that the rent money was applied and the lien satisfied and the case closed. The HOA has continued to rent the home out since, apparantly pocketing the money. The home is in foreclosure and we dont want to keep it, but also dont want to see the HOA making a profit. will they need to pay any money they are making back to the bank when foreclosure is complete.
In condominiums where the owner has outstanding association fees, Illinois law permits them to get a judgment for the amount due and an order of possession so they can rent out the unit to recover what is owed to them. They are not allowed to profit after that point, but can continue to collect the customary monthly fees from the renter for the upkeep of the building.
This answer is intended as informational only, and does not constitute legal advice or form an attorney-client relationship between us.
Chapter 13 Bankruptcy Attorney
I don't know if an attorney can help you with this. Remember what may seem like a profit to you may not actually be a profit. The HOA has to maintain this property beyond just managing the association. It may be comfort to know that while the HOA can collect rent, all that glitters isn't gold. They may(not likely) have to pay money to the bank if the bank pursues any malfeasance on behalf of the HOA. In fact the bank maybe on the hook for paying the condo on a new law in Illinois that makes banks pay 6 months of unpaid assessments to the HOA when the HOA had taken possession of the unit.