Tenant not paying condo dues!

9/14/2010:

What action can you take on a delinquent condo owner?

One Hoboken411 reader lives in a building where one particular unit owner hasn’t paid their condo association dues in ages – and is looking for advice.

“I am looking for advice from fellow Hoboken residents. I currently am part of a eight-unit condo building in Hoboken. The association has had an ongoing problem with one owner who feels that he does not need to pay his homeowners association monthly maintenance fee or any assessments that comes up.

He currently owes the association over $12,000 (this included monthly dues, assessments, legal charges and late fees).

We have had to dip into our pockets on more then one occasion to cover expenses due to his delinquency. We have filed a lien against him (and filed an updated lien recently to reflect new amount owed) which has accomplished nothing.

He currently has a renter in there now, so I know he is at least collecting rent from this tenant. We have sent certified letters and so on. I personally have never met the guy as his brother was occupying the unit at that time when I moved in and who has since moved out I have lived in the building for over 3 years and he has not paid a dime to the association since I moved in. I actually think he has never paid a dime at all since buying the unit. I am under the impression that he purchased this unit and others in the area during the housing boom for a quick flip and resell which obviously didn’t work out for him.

Does anyone have any suggestions, advice on what we can do besides filing the lien? I find it impossible that he can get away with this. We, as an association, are very frustrated. I am also curious to see if there are any other associations in the area that are in a similar situation.

Sincerely,
Frustrated on Monroe Street

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33 Comments on "Tenant not paying condo dues!"


Member
Dperez
4 years 11 months ago

My condo association is going through the exact same thing. We just put a lien on one of our tenants. As of now, we have told the maintenance people to not clean their floor and put up a sign prohibiting them from using our garbage facilities (yes, it’s hard to catch them using the facilities but it drives the point home) Bottom line, give them little or no benefits from maintenance that you are paying for. Good luck.

Member
4 years 11 months ago

I would just throw my trash in the nieghbor’s dumpster but that’s just me:)[quote comment=”197446″]My condo association is going through the exact same thing. We just put a lien on one of our tenants. As of now, we have told the maintenance people to not clean their floor and put up a sign prohibiting them from using our garbage facilities (yes, it’s hard to catch them using the facilities but it drives the point home) Bottom line, give them little or no benefits from maintenance that you are paying for. Good luck.[/quote]

Member
4 years 11 months ago

It was YOU![quote comment=”197448″]I would just throw my trash in the nieghbor’s dumpster but that’s just me:)

[/quote]

Member
getz76
4 years 11 months ago

ajm has a great point. You did mention he does not have a mortgage. If so, you are the first lien and you could foreclose. Had not thought about that. Who cares what the unit sells for as long as it clears at least $12,000… I bet you get your cash pretty quickly once he gets the foreclosure papers…

Member
Taurus10
4 years 11 months ago

Thanks everyone for your input, much appreciated! We are very frustrated at this point considering we are all first time buyers and have to keep shoveling out extra money because of the situation. With regards to filing a criminal report for theft of services I believe we would have basis for that. Part of the monthly maintenance fee goes towards electric for the common areas, water for the whole building and trash/recycling. We have also done repairs to the building that benefit the entire building.

We currently have a lien filed against the unit. We filed one in 2008 and just filed again updating the amount in 2010. I have heard from the grapevine that there is no mortgage on the unit however the owner was very close to bankruptcy not too long ago but managed to escape it somehow. I feel like the lien however isn’t going to do anything until he tries to sell and I don’t forsee that happening anytime soon.

We are currently in the process of having to side the front of the building due to water issues and each of us had to shovel out x amount of dollars to cover this and additional to cover the assessment this owner we just expect will not pay. He has been notified but of course he feels he can ignore it.

I really would rather not sit back and wait for the lien to do something, he can not keep getting away with this. What is we all just decided not to pay….

Member
getz76
4 years 11 months ago

Good luck. Have the association sue him. Most judges in this situation will allow garnishment of the rent, especially with another assessment coming. You will also make him appear in court, which is the last thing this guy wants to do. He wants to keep a low profile to avoid the angry mob.

That lien isn’t going to do anything for you for a long time, and even then it is going to be brutal to collect (usually screws up the closing and takes a while to find a mortgage lender who will lend without clear title).

Update us on the happenings, if you have a chance. I really hope it works out for you guys.[quote comment=”197402″]Thanks everyone for your input, much appreciated! We are very frustrated at this point considering we are all first time buyers and have to keep shoveling out extra money because of the situation. With regards to filing a criminal report for theft of services I believe we would have basis for that. Part of the monthly maintenance fee goes towards electric for the common areas, water for the whole building and trash/recycling. We have also done repairs to the building that benefit the entire building.We currently have a lien filed against the unit. We filed one in 2008 and just filed again updating the amount in 2010. I have heard from the grapevine that there is no mortgage on the unit however the owner was very close to bankruptcy not too long ago but managed to escape it somehow. I feel like the lien however isn’t going to do anything until he tries to sell and I don’t forsee that happening anytime soon.We are currently in the process of having to side the front of the building due to water issues and each of us had to shovel out x amount of dollars to cover this and additional to cover the assessment this owner we just expect will not pay. He has been notified but of course he feels he can ignore it.I really would rather not sit back and wait for the lien to do something, he can not keep getting away with this. What is we all just decided not to pay….[/quote]

Member
4 years 11 months ago

If you have the lien, he won’t be able to get a mortgage on the property. If he doesn’t have a mortgage then you’d be first in line to get repaid (unless he owes back taxes and then you’re second).
If you are the first lien on the property it’s much easier to foreclose because you don’t need to get the lien holders above you to agree. If you can foreclose, then you essentially force the sale of the property in order to be repaid. [quote comment=”197432″]Good luck. Have the association sue him. Most judges in this situation will allow garnishment of the rent, especially with another assessment coming. You will also make him appear in court, which is the last thing this guy wants to do. He wants to keep a low profile to avoid the angry mob.That lien isn’t going to do anything for you for a long time, and even then it is going to be brutal to collect (usually screws up the closing and takes a while to find a mortgage lender who will lend without clear title). Update us on the happenings, if you have a chance. I really hope it works out for you guys.

[/quote]

Member
4 years 11 months ago

Wow and to think when I fell $600 behind when I was out of work (3 months) my neighbors were ready to stone me…..$12,000 WOW~

Member
MrHightower
4 years 11 months ago

Re-reading your original post, if you already have a a lien filed against the owner, you have two options

(1) continue to dilegently update your lien and you will be paid when that owner goes to transfer his unit, or when he goes to mortgage his unit

(2) initiate foreclosure proceedings for the lien. This method, however, will be complicated by the existence of the tenant in the unit.