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| Sunday, September 07, 2008
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| Author |
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JulieM2
(Tennessee)
Posts:11
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| 05/16/2008 10:36 AM |
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Can someone please tell me what the heck this means??
Section 9. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any mortgage or mortgages now or hereafter placed upon the properties subject to assessment; provided, however, that such subordination shall apply only to the assessments which have become due and payable prior to a sale or transfer of such property pursuant to a decree of foreclosure, or any other proceeding in lieu of foreclosure. Such sale or transfer shall not relieve such property from liability for any assessments thereafter becoming due, nor from the lien of any such subsequent assessment. |
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MicheleD
(Kentucky)
Posts:1444
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| 05/16/2008 10:56 AM |
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In our case, our attorney told us that essentially our lien gets wiped out if the house becomes foreclosed on.
We can, however, prorate from the date of new title and bill the new owner/mortgage company once they take title, but only from the date the title was effected and any assessments owed prior to that are zeroed out.
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BrianB
(California)
Posts:1591
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| 05/16/2008 11:02 AM |
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Posted By JulieM2 on 05/16/2008 10:36 AM
Can someone please tell me what the heck this means??
Section 9. . .
In layman's terms:
Subordination of the Lien to Mortgages: (the order in which liens are collected with regard to Mortgages).
The lien of the assessments provided for herein shall be subordinate to the lien of any mortgage or mortgages now or hereafter placed upon the properties subject to assessment; (any liens made by the HOA for non payment of dues/assessments are considered "Secondary" to primary Mortgage liens, and will be paid only after the mortgage lien is filled)
provided, however, that such subordination shall apply only to the assessments which have become due and payable prior to a sale or transfer of such property pursuant to a decree of foreclosure, or any other proceeding in lieu of foreclosure. (this secondary status ONLY applies to liens that were filed BEFORE the property is foreclosed).
Such sale or transfer shall not relieve such property from liability for any assessments thereafter becoming due, nor from the lien of any such subsequent assessment (foreclosure on the propertly does not keep the HOA from filing NEW liens for assessments unpaid AFTER the foreclosure, so you can file new liens on the bank or new owners). |
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JulieM2
(Tennessee)
Posts:11
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| 05/16/2008 11:06 AM |
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| You guys are awesome - I've been staring at that verbiage for 30 minutes just blinking my eyes. Thank you. |
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EllenS1
(Florida)
Posts:321
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| 05/16/2008 3:08 PM |
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| It means the lender gets paid first unless the lien came before the lender made the loan. |
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HaroldS
(Arizona)
Posts:904
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| 05/16/2008 3:15 PM |
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| In other words, it also means that HOA liens are SOL. |
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| You are not authorized to post a reply. |
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