In order for you to have the bank waive any amounts from its payoff, you are going to need to apply for a short sale. That can be a long process.
The taxes are typically paid on an annual basis by the servicer, even if you have not been making your monthly payments to the lender. If they have not been paying them and the foreclosure is completed with the lender owning the property after the foreclosure sale, the bank will need to pay them before they sell the unit. Condo fees are capped at 1% of the original loan balance or 12 months of past due condo fees, which ever is less.
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Until the bank takes title it is not liable for the taxes and fees. Sometimes the banks pay them while the unit is in foreclosure, but with the large number of foreclosures that is not happening often. The owner is still liable for these costs and even if the unit sells, the seller can go after the previous owner for the condo fees.
This communication is not intended to create an attorney/client relationship. It is always recommended you consult an attorney in person to discuss your case. The Law Offices of Stage & Associates practices state-wide and represents homeowners and community associations. Please visit our website at www.stagelaw.com.