In general, when a condominium unit is foreclosed, any assessment balances unpaid by the prior owner are extinguished by the foreclosure. IL law then allows associations to recover certain amounts from a third party purchaser if they have taken the proper steps

A recent opinion from Illinois’ First Appellate District provides that “prompt” payment of assessments is required to extinguish pre-sale assessments under the Condominium Property Act. This means that, potentially, the bank could be held responsible for the prior owner's balance if they don't "promptly" start making assessment payments on the unit. 

The problem, however, is that there is no strict definition of "prompt" established by law to determine whether or not the lien has been successfully extinguished by the bank.

Further guidance regarding the payment timing required to confirm the extinguishment of a condominium association’s lien will hopefully be provided in a pending Supreme Court appeal.

Read more about current events on this topic here.

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