Condo association boards are responsible for the well-being of their entire association community, and the way they finance shared costs and resources within the association is via assessments and dues.
Each association member is responsible for making timely assessment payments, and failure to do so could lead to serious consequences – potentially, even foreclosure and eviction. If you’re a condo association board member in Chicago and find yourself up against a delinquent unit owner, here’s what to know.
What to do When a Condo Owner Defaults on Assessments
Managing association finances is a key role of condo board members. This includes collecting all monthly and special assessments. Unfortunately, this job does not always go as planned. When owners don’t pay their assessments on time, the board may need to pursue a foreclosure or eviction.
If you have a unit owner who fails to pay the required fees or assessments for living in your condo association, it could be a reason for the association board to initiate an eviction action. Because the failed payment is considered a lien on the unit owner’s interest in the property, it may be cause for foreclosure, The Illinois Condominium Property Act outlines the process for taking foreclosure action for associations in Illinois.
Before pursuing more serious action, the association board members should attempt traditional debt collection methods first, such as sending a demand notice. When that fails, however, the association can get a lien on the property for delinquent assessment payments.
Though this is never something a board wants to do, it may become necessary in order to ensure the community’s best interests are upheld. A full-service association management firm like us at First Community Management can help your board navigate this process. Get in touch with us today to ask your questions about association management.