What would happen if an investor don't pay the condo fees

5 Replies

This might be a silly question , but does anyone know what would happen if an investor don't pay the condo fees and continue to rent out the property , besides have the properties being put on lein when selling

First, know it could affect your buyer's eligibility for buying it. Most programs don't allow more than 15% of the units to be late on their HOA dues as a sign of the HOA health.

In terms of how they'd pursue it depends on your HOA's CC&R's and what you or the tenant signed. Depending on that, they can sometimes:

- Pursue the tenant

- Withhold services

Then they might also, depending on their written procedure:

- File a claim for the unpaid dues and use the judgment to garnish funds or wages.

- File a lien against the property

- File a foreclosure suit, which would obviously notify your mortgage servicer of the delinquency and be a violation of your note, which could trigger other unhappy things like the servicer paying it and forcing you to pay it back with penalties - or simply calling the note due then.

@Byron Ma

two words: RENT INTERCEPT. 

Most associations these days have a provision in their CC&Rs that allow them to send the tenants a rent intercept demand in addition to filing a lien. The next step would be a personal lawsuit and foreclosure steps or some combination thereof. 

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