Funding condo dues gets complicated because one of the first things to drop in a distressed property scenario is what could be regarded as incidentals, such as the association dues. If a homeowner can't make their mortgage payment, chances are strong that they'll drop the association dues too, especially as they approach foreclosure. Off they go, leaving it all to the banks to deal with and the condo association manager is left to run the association with decreasing funds. Fortunately in some states, laws provide for the funding of association dues to be collected early in the long line of creditors in a foreclosure.
The process of collecting the overdue funds is a legal one and correctly filed and pursued in court, enjoys a predictably favorable outcome. Advance funding of delinquent dues is made possible under the provisions of such laws in Florida for Association Capital's clients.
