D.S. from outside of Connecticut writes:
Dear Mister Condo,
Mister Condo replies:
D.S., foreclosures are not usually left to HOA or condominium association volunteers. Generally speaking, they fall into the realm of work performed by community association attorneys who are well-versed in the intricacies of proper foreclosure proceedings. Please understand that I am not an attorney so please take my advice as friendly and not legal. The long and short of it involves conducting a search on the property’s deed, usually done at the local land records office to see who is listed as a lien holder. Liens are very specific legal filings attached to a property deed. The lien holders are notified by the party seeking the foreclosure and the foreclosure process begins. The foreclosing party, usually represented by an attorney, notifies the courts that all listed lien holders were notified of the foreclosure and may even provide proof with certified notice receipts that notification was made. I do not know of a court system that would not require that as a minimum guarantee that all listed lien holders were notified. However, it is possible that a lien holder is missed for several reasons. Depending on the age of the lien, it is possible that the lien holder has changed. This can happen when banks sell mortgages or change ownership. As a rule, the duty to update the lien is on the lien holder so if they didn’t update their lien, it is possible that they would miss notification. The party taking foreclosure action isn’t obligated to seek out unlisted lien holders. However, in the case of mortgages, the courts and local attorneys are generally aware of these changes and would likely send notification to the institution they suspected was the mortgage holder. Less common lien holders (a contractor who may have gone out of business, for instance) may miss notification for the simple reason they are no longer in business. Once the court is satisfied that listed lien holders have been notified and given adequate time to respond, the foreclosure action may begin. I hope that helps, D.S.. All the best!