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Maine Alliance for Road Associations

Foreclosure Properties and Association Notice of Claim (Lien)

  • 01 Apr 2016 4:05 PM
    Message # 3923953
    Anonymous member (Administrator)
    Our association has filed notices of claims (liens) for past-due road fees on two residences that are presently in foreclosure.  As a statutory road association, we followed the specified process for filing the claims.  Can we be certain that, when the properties are sold, the company that conducts the foreclosure sale will ensure that our claim is "settled"?  Or, do we need to take proactive steps to contact the company handling the foreclosure sale to ensure that the claim is satisfied?  And, if that's the case, does anyone have experience or insight into how to go about that task?  How does one find out when a specific property is scheduled for a foreclosure sale?
  • 06 Apr 2016 10:02 AM
    Reply # 3931947 on 3923953

    My association is both a Title 13b and a Title 23. The Title 13b side was the first formed about 14 years ago but also established itself as a Title 23 Statutory RA as soon as the law became available and has operated as such ever since. It is much easier as a Title 23 since the law is reasonably clear as to how to operate particularly in the collection of unpaid road maintenance fees.

    I have collected every cent owed from three properties which were in Foreclosure. It took some time, well over a year as I recall, but it was worth it. One of the properties owed three year's worth of fees. Since the mortgagee, a bank in each case, elected to place the properties for sale I immediately prepared a letter to the real estate company involved. (The FOR SALE signs on the property tipped me off.) The letter informed them of the delinquent payment and provided a copy of the recorded Notice of Claim which of course shows the amount owed. In the letter I emphasized that the claim "burdens the parcel and runs with the land". A telephone call to the real estate agents handling the properties also helped since they aren't always aware of Title 23 wording. I found that once the title company learned of the claim, they wanted a detailed breakdown of the total billing which I happily provided including interest, mailing costs, Notice of Claim recording cost and Notice of Claim Discharge recording cost. The title company called me by telephone to request the billing information after which we communicated by email. When the "closing" date for sale of the properties came my association was immediately mailed a check with payment in full. At that time I immediately mailed the Discharge to the Registry for recording with copy to the title company. No attorney was required for any of this, just courage to continue.

  • 07 Apr 2016 1:02 PM
    Reply # 3934501 on 3923953
    Deleted user

    Just for the record and anyone who is interested, we had 2 owners that were in arrears on their annual dues - one for 4 years and another for 3. We were told by the Registry that we needed to file a lien, which we did. We have collected from one and we are waiting for the other. We did notify each owner that a lien had been placed and the liens were recorded as liens by the Registry.

                            The Maine Alliance for Road Associations


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