In Massachusetts, the first step in commencing statutory lien enforcement proceedings is to send the unit owner a statutory notice of delinquency. This is typically done when the unit account is either 60 or 90 days past arrears.
If payment or a payment plan is not received, a unit title is ordered and reviewed to learn the names and addresses of both the holder of the first mortgage on the unit, as well as any other parties of interest who might need to be notified. This could include a second mortgage holder, such as a bank that has granted the unit owner an equity line of credit.
The condominium’s lien for unpaid common expenses has a complete priority over any second mortgages. If the unit has to be sold to satisfy a judgment, the second mortgage would be completely wiped out, as it is unlikely there would be any money left over to satisfy the debt. By notifying them in advance, they can decide what steps to take to protect their interests.
The Association’s lien includes all legal fees, collection costs, advertising costs, and foreclosure costs.
If the unit’s account arrearage remains unpaid for six months, the Association will file a complaint in court to obtain a judgment and order for sale of the unit. The case then proceeds through the judicial system and ultimately into a foreclosure sale.