An interesting case was recently decided by the Washington Court of Appeals, reminding mortgage lenders that they can lose their collateral upon the lien foreclosure of a condominium homeowners’ association (“HOA”). An HOA’s lien for certain common expense assessments may take a “super priority” over an earlier recorded mortgage. And if the HOA forecloses such a lien, there may be no relief for the mortgage lender under Washington’s redemption statute because the redemption statute does not apply to creditor lienholders that attached before the lien that was foreclosed on.
Click the link to read the entire case of Summerhill Village Homeowners Ass’n v. Roughley, No. 66455-7-I (Feb. 21, 2012).