Re: Depends on the overall encumbrance - Posted by Natalie-VA
Posted by Natalie-VA on August 14, 2007 at 07:38:12:
Slightly off topic, but your post reminded me of a situation I had a few years back…
I bought a condo at foreclosure auction (remember, I’m in a DOT state with trustee sales). Normally, taxes and condo fees are prorated to the date of sale (not the same as the date of settlement).
Anyway, when we got ready to settle, I noticed that the condo association was nailing me for the previous owner’s delinquent dues. They weren’t even in the form of a lien yet…just delinquent dues. I argued that I would only pay from the date of sale. They argued that since they “provide services to the property” that they could pursue a mechanics lien if I didn’t pay. To make a long story short, the trustee ended up paying, since the proceeds were enough to take care of it.
I always wondered about their argument about “providing services to the property”. Logically, it makes sense, but I think that the process to file and collect on a mechanics lien is very specific and don’t know if they really could have done it.