What should a small condo association do when one unit is foreclosing?
Chicago, IL |
Our 3-unit condo association received a notice from the county clerk’s office that one of the units is being foreclosed by the bank. The verbiage in the document seems to be involving the association in the matter but we are not sure what to do.
The owners of the unit are NOT delinquent in their assessments. From what we can gather online, the association may only be entitled to up to 6 months of delinquent assessments in the event that the owners stop paying in the future. Our assessments are only around $100/month.
Is it even worth it to file an appearance with the courts when the assessments are so low?
Is there anything else that we need to do/file at this time besides the appearance?
If we do need to put a lien on the unit in the future, are there fees pertaining to doing so?
The first thing you need to do is monitor the status of the foreclosure case. So long as the unit owner is current on assessments you do not need to worry. Once the bank forecloses, however, the bank will then be responsible for the assessments.