Condo Associations have the power to Collect NOW

Posted by on April 27, 2012 in Blog | 0 comments

Condo Associations have the power to Collect NOW

MORTGAGE FORECLOSURES DON’T TAKE AWAY THE ASSOCIATION’S RIGHT TO RECEIVE CONDO FEES

Rhode Island Law provides powerful rights to executive boards to collect up to six months of delinquent condo fees and up to $7,500 in attorney fees and costs incurred in collection prior to the foreclosure. The highest bidder at the foreclosure must pay all post-foreclosure condo fees in a timely manner. Executive boards need to take aggressive legal action now more than ever.

CONDO ASSOCIATIONS HAVE THE POWER TO COLLECT NOW

Rhode Island State Law gives condo associations statutory lien and foreclosure powers. Condo associations may foreclosure on units for delinquent condo fees in the same manner that mortgage lenders foreclosure on units for delinquent mortgage debt. Sadly, these powers are often not exercised due to lack of knowledge at the executive board level. If boards fail to collect delinquent condo fees, those good people who pay their condo fees have to make up the difference.