bostonbubble.com

[Devlin]

Assume you have a 6 unit condo building and some tenants are not paying their HOA fees. Therefore, the Master Insurance policy has lapsed.

How would I protect my investment if I owned one of the condo units? I know I can get a HO-6 to cover personal belonging and improvements to the unit but what happens if the whole building goes down or becomes unlivable?

Can I get a better policy than the HO-6. Lets assume there are no outstanding loans on the units.

Thanks,

[JCK]

Talk to a lawyer that deals with this stuff. There is a mechanism for filing a super-lien in MA for the backed condo fees that comes before the first mortgage, should the bank decide to foreclose on the delinquent units.

My understanding is that mortgage company will typically pay the super-lien balance to the association, which will then, in turn, escrow the unit owner for the amount. The mortgage company will do this in order to maintain their "first in line" status as lien holder.

I believe you can include the lawyer's fees in the super-lien amount, so the net result is that the delinquent owners become responsible for both the backed dues as well as any fees associated with collection.

I'm assuming this is an owner-run association? Management companies generally know how to work this system to force the owners to pay.

[Guest]

There was briefly a Mngt Co but it sounds like they stopped managing when the Assoc funds dried up.

Anyone know an attorney that's up on their condo regs and docs.

[JCK]

Sounds like a lousy mgmt company. You'd think they'd know how to collect their own money!

Here is quick summary of the law that I found online.

http://bostonrealestateobserver.com/condo-super-lien-bill/

Sorry, I don't know any attorneys myself, but there must a ton out there who can do this sort of thing.

If you (or your friend) is an owner in this building, it might be worth doing this through a Management company. I wouldn't really want to be involved in going after the neighbors all by myself...