M.M. from Fairfield County writes:
Dear Mister Condo,
Do owners that carry a mortgage have to give that information to the board? Several people are objecting to releasing private information.
Mister Condo replies:
M.M., most condominium associations that I know of do have provisions that allow or require unit owners to divulge first and second mortgages on the units within the association. There is good reason for this. Since the mortgage company has a lien on the title they also have a legal right to be notified of actions taken against the unit. For instance, if a unit owner falls behind in common fees or fails to pay a special assessment, the association may need to take foreclosure action or place a lien against the unit. As a mortgage holder, the lending institution must be notified of such an action. The only way for the association to notify the lien holder is for the unit owner to provide that information. While I can certainly understand the concern for privacy this is a business and legal issue and has nothing to do with the Board wanting to know. The law says they need to know so it is in everyone’s best interest that the unit owners comply with the request to divulge the information. All the best!