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Maine Alliance for Road Associations

Bank responsible for dues?

  • 09 Feb 2011 12:24 PM
    Message # 519010
    Deleted user
    The bank has recently taken a house on our road.  The previous owner had not paid his dues for the year and I was wondering if the bank should be held responsible for the dues this year.  They are using the road to show the house on a regular basis.  What would be the proper protocol for going about this.
  • 09 Feb 2011 12:46 PM
    Reply # 519016 on 519010
    Deleted user
    Derek Perkins wrote: The bank has recently taken a house on our road.  The previous owner had not paid his dues for the year and I was wondering if the bank should be held responsible for the dues this year.  They are using the road to show the house on a regular basis.  What would be the proper protocol for going about this.

    If your association is organized in such a way that assessments "run with the land" (as they do in a statutory road association), then the current owner of record is obliged to pay.  If the bank has actually taken title, they are indeed responsible to pay.

    Of course, it could be challenging to find the appropriate individual within the bank to contact about getting paid, and perhaps more challenging to get that person to actually make the payment.

    I guess I'd start by sending an assessment notice to the bank and see what sort of response you get.  You might try to find out to what address the town is sending the tax bill, and send it there.

  • 02 Mar 2011 2:45 PM
    Reply # 537047 on 519010
    Deleted user
    We are a statutory association and just went through this with a financial institution.  A house was uninhabited and I kept an eye out for any signs or postings.  Sure enough some postings appeared on the house so that gave me contact info on a realtor.  I emailed them with our plan and they had the institution contact me.  Our strategy is simple and direct.  We inform them (invoice) that the dues, etc owed run with the property and that we expect to get paid.  The only leverage we have is to tell them that if the debt is not satisfied by the closing on the property, we will have no choice but to pursue the new owner-in Small Claims Court if needed.  Welcome to the neighborhood LOL.  However, part of the lender's disclosure during the sale usually includes the requirement to belong to the association and they also like to use the term "free and clear" in their dealings so you can see how we might get in the way.  Legal proceedings would likely occur.  This has worked for us but it does take a bit of work.
  • 03 Mar 2011 8:42 AM
    Reply # 537785 on 537047
    Ray Ronan wrote: We are a statutory association and just went through this with a financial institution.  A house was uninhabited and I kept an eye out for any signs or postings.  Sure enough some postings appeared on the house so that gave me contact info on a realtor.  I emailed them with our plan and they had the institution contact me.  Our strategy is simple and direct.  We inform them (invoice) that the dues, etc owed run with the property and that we expect to get paid.  The only leverage we have is to tell them that if the debt is not satisfied by the closing on the property, we will have no choice but to pursue the new owner-in Small Claims Court if needed.  Welcome to the neighborhood LOL.  However, part of the lender's disclosure during the sale usually includes the requirement to belong to the association and they also like to use the term "free and clear" in their dealings so you can see how we might get in the way.  Legal proceedings would likely occur.  This has worked for us but it does take a bit of work.
    Wow. This is definitely the low-down nitty-gritty. I would imagine the realtor might use it as a selling point that the road has a "strong association," though, don't you agree?!
  • 03 Mar 2011 9:08 AM
    Reply # 537817 on 537785
    Deleted user
    Betsy Connor Bowen wrote:Wow. This is definitely the low-down nitty-gritty. I would imagine the realtor might use it as a selling point that the road has a "strong association," though, don't you agree?!

    A Realtor would describe a house on fire as "warm and vibrant".
  • 04 Mar 2011 1:33 PM
    Reply # 538912 on 519010
    Deleted user
    As a statutory road assn, you always have the option of voting to place a lien on the property. If you did that I bet that would get someone's attention!! If nothing else, the realtor would put pressure on the bank to get it cleaned up. If it were the other way around the bank would not hesitate to place a lien on the proerty if they were owed money!!
  • 10 Mar 2011 11:50 AM
    Reply # 542981 on 537785
    Deleted user
    Betsy Connor Bowen wrote:
    Ray Ronan wrote: We are a statutory association and just went through this with a financial institution.  A house was uninhabited and I kept an eye out for any signs or postings.  Sure enough some postings appeared on the house so that gave me contact info on a realtor.  I emailed them with our plan and they had the institution contact me.  Our strategy is simple and direct.  We inform them (invoice) that the dues, etc owed run with the property and that we expect to get paid.  The only leverage we have is to tell them that if the debt is not satisfied by the closing on the property, we will have no choice but to pursue the new owner-in Small Claims Court if needed.  Welcome to the neighborhood LOL.  However, part of the lender's disclosure during the sale usually includes the requirement to belong to the association and they also like to use the term "free and clear" in their dealings so you can see how we might get in the way.  Legal proceedings would likely occur.  This has worked for us but it does take a bit of work.
    Wow. This is definitely the low-down nitty-gritty. I would imagine the realtor might use it as a selling point that the road has a "strong association," though, don't you agree?!

     

    Well Betsy, we like to refer to it as persistence LOL.  I am fortunate to be retired which allows me to pursue our dues wherever they take us.  We have managed to avoid the "lien" thing as it can take on a life of it's own, although it remains in our tool kit.  When needed, we rely on Small Claims Court.  I like Todd's description of a house on fire.  Thanks for all you and Todd do for Private Ways.

  • 11 Mar 2011 8:30 AM
    Reply # 543531 on 542981
    Ray Ronan wrote:
    Betsy Connor Bowen wrote:
    Ray Ronan wrote: We are a statutory association and just went through this with a financial institution.  A house was uninhabited and I kept an eye out for any signs or postings.  Sure enough some postings appeared on the house so that gave me contact info on a realtor.  I emailed them with our plan and they had the institution contact me.  Our strategy is simple and direct.  We inform them (invoice) that the dues, etc owed run with the property and that we expect to get paid.  The only leverage we have is to tell them that if the debt is not satisfied by the closing on the property, we will have no choice but to pursue the new owner-in Small Claims Court if needed.  Welcome to the neighborhood LOL.  However, part of the lender's disclosure during the sale usually includes the requirement to belong to the association and they also like to use the term "free and clear" in their dealings so you can see how we might get in the way.  Legal proceedings would likely occur.  This has worked for us but it does take a bit of work.
    Wow. This is definitely the low-down nitty-gritty. I would imagine the realtor might use it as a selling point that the road has a "strong association," though, don't you agree?!

     

    Well Betsy, we like to refer to it as persistence LOL.  I am fortunate to be retired which allows me to pursue our dues wherever they take us.  We have managed to avoid the "lien" thing as it can take on a life of it's own, although it remains in our tool kit.  When needed, we rely on Small Claims Court.  I like Todd's description of a house on fire.  Thanks for all you and Todd do for Private Ways.

    And thanks to you, too!

                            The Maine Alliance for Road Associations


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