I own a small 2/1 condo that used to be part of a fourplex then they turned it into four condos and created an actual condo association.
I bought it in 2012 and as far as I know the unit next to me has been vacant and under contract.
It is a short sale contract and buyer is the owner of another unit, who also happen to be the condo association president.
The short sale has been going on forever, since 2012, and each time I inquired there has been an issue or delay, meanwhile we are getting no monthly fee from that unit, and with only 4 units total we have been hit with several assessments just to pay insurances.
Yes, seller being the condo assoc president who takes part on the payoff negotiaion with the bank is a conflict of interest.
What makes this drag on for so long is the original owner is a foreigner from Australia, he died so they had to so a probate, his dad. Then his dad died, so they had to start over again, his mom, and my understanding is his mom had a stroke.
Finally, I heard that bank is going to foreclose next month.
Meanwhile, I have been urging the buyer, condo association president to take possession on behalf of the association and rent it out month to month cheap just to get some income, any income, and it looks like his lawyer said it is something they can do, but the bank may object.
Should we do a short term rental right before a foreclosure?
If the bank foreclosed it, it may sit on the property for a while and not even put it on the market right? Is the bank required to list the property on MLS or could they try and strike a deal with the short sale buyer?
The association can't "take control" of the unit except through a COA foreclosure. If the unit was being rented out by the current owner, then the COA could "seize" the rents. But since the COA doesn't own the unit, they can't legally rent it out. I assume this is that same unit where the President is hurting the COA, trying to make a sweetheart deal for himself. The bank isn't required to immediately do anything, if they get it back, but they will be responsible for the monthly dues while they own it, in full, but only obligated to pay 1% of the original loan amount for the prior dues. Great Prez you have there. Again, if you want me to call the listing agent to find out their version of the status, as having a prospective buyer, PM me the info.
Yes it's the same place that I posted about. Kind of a sticky situation. The bank may sit on it for two years before acting. Kind of a learning lesson to take that into consideration when buying a condo if there are vacant units one will have to take into account the added maintenance burden. I didn't think much of it when I was told there is already a contract on that vacant unit, but never imagine it could still be in limbo 2+ years later.
Yeh, doesn't sound like a bank sitting on it problem though. Sounds like a no one has the legal authority to sell it yet problem.
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