60 day lender letter

Started by KirkW1 • 4 replies • 4397 views

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KirkW1 (Texas)
Posts: 1,665

Posted:

Our management company told us that there has been a request for a 60 day lender letter. It would obligate us to notify the lender 60 days before we initiated a foreclosure action. The management company said they can track this, but that any liability for failing to notify would remain with the HOA. And that they don't know if other management companies would be able to track this properly.

Anyone care to share some thoughts on the subject?

AR1 (Virginia)
Posts: 12

Posted:

Seems to me that you have a lender that is being lazy or doesn't believe that your lien is secondary to theirs. This looks like a legal nightmare in that, it appears the lender is trying to shift the responsibility. I'd guess your attorney would agree to notifying the lender, but requiring you to wait 60 days, to me, is not something that you have to agree to. Certainly they knew the property was in an Association!!!

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By KirkW1 on 09/25/2008 4:14 PM
Our management company told us that there has been a request for a 60 day lender letter. It would obligate us to notify the lender 60 days before we initiated a foreclosure action. The management company said they can track this, but that any liability for failing to notify would remain with the HOA. And that they don't know if other management companies would be able to track this properly.

Anyone care to share some thoughts on the subject?

There good reasons not to honor this request. Any management company can do this, but why would the HOA want to do it? The mortgage company can get foreclosure info the same way we do when the Mortgage Company forecloses - from the county website. The only benefit I see is to the MC when they charge for this service.

LynetteB (Texas)
Posts: 141

Posted:

Our CC&R's has a section "Liens Subordinate to Mortgages", and it says that the Association shall make a good faith effort to give the 60 day written notice.... but, it goes on to say that failure to give such notice shall not impair or invalidate any foreclosure.

DwightT (Idaho)
Posts: 664

Posted:

I wonder if this is a Texas thing. I've never heard of such an animal.

If we received a request like that from a bank, we would probaby say sure, as long as they give us a commitment that they will pay the dues and maintain the property if THEY foreclose.

We have several bank-owned properties in the neighborhood and getting the out-of-state banks to take care of the property is worse than trying to get an out-of-state homeowner to do it.

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