For years, on behalf of our clients, we have been holding foreclosing banks accountable for payment of assessments from the date of the sheriff sale forward. The banks, on the other hand, liked to argue that their responsibility for payment of assessments did not begin until the date the redemption period expired. At issue – six months of assessments, which for some condominium associations translates to thousands of dollars.
The Michigan Court of Appeals, in a well-reasoned opinion, has ruled in favor of condominium associations, making it established law that a foreclosing bank’s responsibility to pay assessments (when the Co-owner does not redeem) begins on the date of the sheriff sale and not on the date the redemption period expires. The banks do not like it, but now it is the law, and condominium associations will reap the benefit in all such cases of collecting six months of assessments, which may have otherwise been left unpaid.