While the foreclosure crisis has slowed down and most condo buildings have stabilized, many associations continue to face foreclosures. If there are owners in your building in foreclosure who are also delinquent on assessments, it's important for your association to understand what must be done to minimize financial loss.

When a condo owner forecloses, the balance on that owner is wiped clean, and the bank becomes responsible for assessments going forward. However, IL condo law allows the association to collect a portion of that owner's unpaid balance if certain legal actions are taken before the foreclosure concludes. The condo association can collect unpaid assessments charged in the six months prior to taking legal collection action, plus the legal fees and costs associated with that action, from the third party purchaser of the unit at the judicial sale or after foreclosure.

Though the timeline for a foreclosure to be completed is affected by a number of factors, in general you can expect a foreclosure to conclude within about a year of the initial filing. If your association gets notice of a foreclosure and the owner is delinquent on assessments, you'll need to take action during that time.

Haus Financial Services can help your association to create an Action Plan for addressing foreclosures on owners with delinquent accounts. Contact us today!

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