In our previous post, we considered one method a Community Association may use to preserve and collect its lien for unpaid assessments: the memorandum of lien.
In this post, we will focus on the process of foreclosing on a Community Association’s memorandum of lien. As we discussed last time, once the memorandum of lien is recorded, it acts as an encumbrance on the property’s title. Once recorded, the memorandum of lien will be valid for a period of 36 months.
So what may a Community Association do with a memorandum of lien to collect delinquent assessments? As we discussed in the previous post, simply recording the memorandum of lien does not necessarily mean that the Community Association will be paid. However, the General Assembly has provided the Community Association with a powerful statutory tool to enforce its memorandum of lien: the nonjudicial foreclosure.Continue Reading Persistence Can Lead to Dollars Part II: Foreclosing on a Memorandum of Lien