Legal Question in Credit and Debt Law in Maryland

I live in Baltimore MD and own several rental units in a small ( 40 unit ) condo community. We have approx 6 owners who owe our HOA over $100K in deliquent fees and assessments. Our collection attorney is stalled and is unable to collect any money from them. These deliquent owners live on SS, retirement or disability incomes and have no assets to attach or sell. This has been going on for 4-6 years and bleeding the remaining owners that pay their HOA dues. We are unable to turn off utilities that HOA fees pay. They live FREE in our struggling community. All the deliq owners have mortgages. We have recorded many liens over the years. Property values have plummeted. A recent auction of a unit sold for just $5K. Their mortgage balances far exceed resale values. Does foreclosing on our HOA liens make sense if we cant even pay off the 1st trust lender. Do we have any options to consider.


Asked on 11/30/12, 9:48 am

1 Answer from Attorneys
Brett Weiss The Weiss Law Group

One option is to foreclose subject to the first mortgage, evict the former owner, and re-rent the property until the lender forecloses. Given the current status of foreclosures on condos, it is quite possible that the amount of the rent could pay for the outstanding condo fees before the foreclosure actually occurs. (Of course, it is also possible that the owners could come up with the HOA fees to avoid the foreclosure as well...)

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Answered on 11/30/12, 10:40 am


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