Dues for a Redeemed Foreclosure

Started by DeeS1 • 2 replies • 1287 views

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DeeS1 (Michigan)
Posts: 223

Posted:

Does anyone know in Michigan, what happens when a bank forecloses and sells the house at sheriff's sale, but the home is then short sold by the owner during the 6-month redemption period?

I know the foreclosure typically discharges the back dues, but we've never had a house "redeemed" as it were.

Are the association dues discharged at the foreclosure and NO LONGER collectable at the short sale, or are they still collectable with the title transfer at the short sale?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Dee,

If it was a short sale then I doubt there were any funds left to pay the assn. The mortgage co would be first in line and they didn't even get the full amount owed!

As for collecting at title transfer that may depend upon your state laws and/or what is stated in your CCRs.

DeeS1 (Michigan)
Posts: 223

Posted:

So far, we have always gotten our fees on a short sale, although I couldn't point you to any legislation which has allowed this.

I'm thinking that perhaps the association lien is not discharged if there is no actual foreclosure and the dues must be paid to clear title upon the short sale?

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