Facing a foreclosure notice is alarming and finding a legitimate solution to stop it can be daunting. Many companies promise results by negotiating with your association board or attempting a loan modification; we guarantee a stopped foreclosure sale if you qualify and file for a Chapter 13 bankruptcy plan before the sale occurs!
Can My Condominium Association Foreclosure on My Condo?
Condo associations CAN and WILL foreclose. Michigan condominium foreclosure laws explain that the association can record a statutory lien if you default on your condo association dues. The law then permits them to foreclose upon the lien using a foreclosure by advertisement (i.e. Sherriff’s Sale) OR a judicial foreclosure proceeding.
Generally, an association will pursue judicial foreclosure. Because the association’s primary objective is the collection of dues, the judicial process establishes a money judgment that creates an indisputable debt. They can then enter into an agreement with the debtor to pay the judgment or foreclose on the condo. Once the judgment is entered, the likely next step is a garnishment.
Can I Stop a Condo Association Foreclosure?
Yes! We can provide legal protection from foreclosure by filing a Chapter 13 bankruptcy prior to a foreclosure sale. This is the only legal means to stop a sale after a foreclosure notice short of coming to an agreement with the condo association to stop the sale.
In most cases, communication has broken down to the point that an agreement cannot be reached in time. The Homes Owners Association (HOA) board may feel like foreclosure is the best means to collect on the debt. In addition to immediately shutting down the foreclosure sale, the Chapter 13 plan provides many other unique benefits for your budget.
A Chapter 13 allows you to:
- Potentially remove the lien for past due association dues and reduce the debt;
- Reduce and defer other unsecured debts to make room in your budge to pay future HOA dues and remain current on other secured debts;
- Legally eliminate any unpaid unsecured debts at the completion of the 36 – 60 month Chapter 13 plan;
- Receive court protection from your creditors and their actions for the duration of the plan to ensure that your budget stays on track;
- Improve your credit score by removing late reports to the credit bureaus, creating consistent and timely payments to your creditors and reducing your debt-to-income ratio by focused efforts to pay down principal debt.
Read other information regarding condominiums and HOAs:
Call Us Today!
For over a decade, our firm has been handling Michigan foreclosures and improving our client’s finances and credit. Rely on our experience to help you get back on track with your budget and keep your condo.
Call us at 866-261-8282 for a free consultation with a licensed attorney to discuss your options for debt resolution and foreclosure prevention. Our attorneys share over 50 years of legal experience specifically in bankruptcy and debt resolution law. We offer a free consultation over the phone or at any of our six Michigan locations: Detroit, Ann Arbor, Flint, Dearborn, Southfield or Warren. We have over 50 years of combined legal experience in solving debt issues and preventing foreclosure. We look forward to your call and earning your trust.