Thursday, August 2, 2012

Judge Slams Brakes On Condo Lien Foreclosure Where HOA Pocketed Substantial Payment From Delinquent Unit Owner, Then Failed To Tell Court

In New York City, Habitat Magazine reports:

  • Most condominium boards and their managers and attorneys act in what they perceive to be the best interests of their condo associations. But when one Manhattan board in an arrears foreclosure tried to not let the owner pay, and then tried to not tell the court when it did let the owner pay, the judge called the board's actions "inexplicable." You really, really don't want a judge to say that.
  • Judge Joan A. Madden, in her July 10, 2012, decision rejecting the board's request for summary judgment, scathingly wrote that, "Even though [the board's] Updated Tenant Ledger clearly shows that defendant made a $7,397.91 payment … [the board] simply seeks the relief … without mentioning such payment and acknowledging that defendant satisfied a substantial portion of the lien for unpaid common charges ... [or that the board] has been charging defendant for 'legal fees.' ... [The board's] silence as to the foregoing payment and charges is inexplicable."
For the ruling, see Board of Mgrs. of the Clinton West Condominium v. Desmond, 2012 NY Slip Op 31791(U) (Sup. Ct. New York County, July 2, 2012).

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