All About Unpaid Common Charge Foreclosures

Overview

Foreclosure for Unpaid Common charges occurs when the owner of a condominium unit fails to pay the monthly common charges owed for their unit. These accumulated unpaid common charges then become a lien against the condominium unit.

The Board of Managers of the condominium files an instrument called a “Lien of Unpaid Common Charges” against the unit. If the unit owner does not satisfy the lien, the Board of Managers can initiate a foreclosure proceeding. The court will then order a foreclosure auction be held to collect the money to satisfy the lien of unpaid common charges.

Investors need to be aware that unpaid common charges can be subject to any open mortgages that may be held against the condominium unit. The successful bidder at an auction for the foreclosure of unpaid common charges will be responsible for paying off any open mortgages that may be held against the unit.

Profiles reports upcoming Unpaid Common Charges foreclosure auctions on it's weekly Manhattan Foreclosure Auction Schedule under the heading "Foreclosure for Lien of Unpaid Common Charges".