[WSBARP] Condo HOA Lien Foreclosure

[Kathryn R. McKinley]

Actually, if the condominium was formed under the Washington Condominium Act, the COA may have a super priority lien over CitiMortgage for assessments in the 6 months preceding foreclosure. See Summerhill Village Homeowners Association v. Roughly. I believe it is a 2012 case.


Kathryn R. McKinley
Of Counsel
[cid:image001.jpg at 01D05041.AF4BC860]
717 W. Sprague Ave. Suite 1200
Spokane, WA 99201
(509) 455-6000
kathryn.mckinley at painehamblen.com<mailto:kathryn.mckinley at painehamblen.com>

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rich Holland
Sent: Tuesday, February 24, 2015 2:32 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Condo HOA Lien Foreclosure

That is awesome, but I doubt it.  Look at the governing documents of the Condo.  They almost ALWAYS subordinate COA liens to the first mortgage.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Tuesday, February 24, 2015 1:46 PM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Condo HOA Lien Foreclosure

I do not do much condo work so here is a question for you all.

The condo owner did not pay his HOA dues and a sheriff's sale was done.  The purchaser at the sheriff's sale has brought in a quote from somewhere saying that "in some states" the HOA liens are considered "super priority liens".  The quote further says that if the HOA forecloses the super line, such as in this case, it may eliminate the first mortgage.  In this case CitiMortgage has a $60,000 mortgage.

Does the foreclosure and Sheriff's Sale brought by the HOA for dues eliminate the CitiMortgage underlying DOT and Note?

Thanks.

(My instincts say "No, it does not".)

James R. Doran
Attorney at Law
100 E. Pine Street - Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>

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