Assessments Due Upon Foreclosure
Posted by Ryan McCabe at 4/13/2009 9:30 AM 
Categories: Condominium Association,Foreclosure,Property Owners Association,SC Community Association Law,Assessments
Categories: Condominium Association,Foreclosure,Property Owners Association,SC Community Association Law,Assessments
Section 27-31-210 of South Carolina Code of Laws annotated provides: Where the mortgagee of any mortgage of record or other purchaser of an apartment obtains title at the foreclosure sale of such a mortgage, such acquirer of title, his successors and assigns, shall not be liable for the share of the common expenses or assessments by the co-owners chargeable to such apartment accruing after the date of recording such mortgage but prior to the acquisition of title to such apartment by such acquirer."
Thus, a lender who forecloses on a property or a buyer at a foreclosure sale does not need to start paying association assessments until the lender or purchaser obtain title to the property, which does not occur until the end of the foreclosure process. This means that associations are usually unable to collect any assessments while a property is being foreclosed, which sometimes takes six or more months.
Associations have an incentive to advocate changes in the law that would either impose an obligation to pay assessments at an earlier stage or attempt to shorten or accelerate the foreclosure process. However, in light of the current economic situation and established foreclosure procedures, chances of any meaningful changes any time soon are arguable.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
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