Unable to pay Condo fees

[DavidBranson]

What is the name of your state (only U.S. law)? CT

Hello,
I own a condo in Connecticut. I lost my job and moved to Massachusetts. I have been able to rent the unit to a tenant for far less than the monthly mortgage payment. I subsidize the mortgage myself to keep good credit, but I can no longer afford the condo fees of $500.00/month. It is my understanding that the condo association can put a lien on my condo but cannot foreclose as I owe the bank a much larger amount and they would be first in line. If I am paying the mortgage and not the condo fees can foreclosure happen? What is the worst case scenerio? If I can lose the condo due to a lapse in the condo fees why pay the mortgage? Any advise is appreciated. I have also tried to sell the condo and a short sell will not work. I only have 10% equity after purchasing the unit 2 years ago and sale prices have dropped significantly. I do not have the funds to make up the loss in a sale.

[nextwife]

Originally Posted by DavidBranson

What is the name of your state (only U.S. law)? CT

Hello,
I own a condo in Connecticut. I lost my job and moved to Massachusetts. I have been able to rent the unit to a tenant for far less than the monthly mortgage payment. I subsidize the mortgage myself to keep good credit, but I can no longer afford the condo fees of $500.00/month. It is my understanding that the condo association can put a lien on my condo but cannot foreclose as I owe the bank a much larger amount and they would be first in line. If I am paying the mortgage and not the condo fees can foreclosure happen? What is the worst case scenerio? If I can lose the condo due to a lapse in the condo fees why pay the mortgage? Any advise is appreciated. I have also tried to sell the condo and a short sell will not work. I only have 10% equity after purchasing the unit 2 years ago and sale prices have dropped significantly. I do not have the funds to make up the loss in a sale.

Yes, they can foreclose. Any foreclosure would be "subject to" prior likens, so they would need to pay off the prior mortgages.

[DavidBranson]

Thank you for responding.

If the condo association does not want to pay off the mortgage is there anything else they can do aside from the lien? Can they evict my tenant?

[HUD-1]

In CT, 6 months of condo fees become a super lien, in front of the mortgage! The association can and will foreclose for that. Your first mortgage no doubt has a clause stating that you will be in default if you do not pay for taxes, insurance and condo fees. They cannot evict your tenant except for cause or as part of the foreclosure, after title has passed. Approach the lender again about a short sale due to your job loss and relocation. The lender would rather approve a short sale than take a foreclosure.