Your association's attorney can help you find the appropriate lien form. It is key that you follow your governing documents' collection process -- detailed in a properly adopted, and filed, amendment or By-law -- in order to assure the association's success in collecting monies owed by the owner.
If you chose the incorrect lien form, or if the association does not have the authority to file a lien, or has not followed the pre-filing steps required in your governing documents, the owner can challenge the lien and escape this action.
A homeowners' association would file a labor and materials lien entitled Assessment Lien. See the HOA covenants for more information on liens. I would recommend that the HOA retain a real estate attorney to prepare and file the liens.
Your answer depends on the nature of the HOA lien, the nature of the bank lien, the state law and the governing documents in effect for the HOA. There is no standard.
It would be improper for an HOA to file a lien if there is no legal reason to file such a document.
Read your governing documents to determine that you have an automatic lien on a unit based on monthly assessments.Contact a condominium-savvy attorney and with your governing documents and the unpaid unit's assessment ledger, determine the amount of the formal lien to be filed with the local court.
Your bankruptcy attorney can help you determine whether or not the special assessment was part of your bankruptcy proceeding.
Actions such as sending collection notices, filing a lawsuit, obtaining a judgment, or initiating foreclosure proceedings against a property would likely qualify as proceedings to enforce a lien or collect a debt for unpaid HOA assessments in Maryland. Any action taken by the HOA that aims to recover unpaid assessments through legal means can be considered part of the enforcement process.
Best practices dictate that you work with the association attorney to prepare and file any lien on the part of an HOA. An improper lien, or an improper filing of a lien can be used by the owner to escape the action.
The lien can be reported to a credit reporting agency.
Yes. A note on the interest part--your state's law will dictate what interest, if any, you will receive. And you will assume the HOA's liability--if the lien is later declared invalid, you will be responsible for the homeowner's court costs. Make sure that it is a part of the sale of the lien that the HOA will cooperate in any foreclosure proceedings that might occur to collect the lien--without them, the homeowner will likely win.
The association counsel that filed the lien for the association can answer your question.
It is unlikely that an irrevocable trust gives the property any immunity from liens.AnswerYes. If the property is owned by an irrevocable trust the HOA can place a lien against the property and the trust. The HOA should research the trust so that the present trustees can be mentioned on the lien. Although debts are sometimes difficult to collect from a trust, the property cannot be sold or mortgaged unless the lien is paid.
In this case, apparently, the bank is the owner. So yes, the HOA can file the lien against the bank's ownership of this unit.