Can condo board ban owners from renting to their relatives?
A: I don’t know what state you are in and I don’t know what your state law says about leasing. However, your management company is correct.
There is a priority in community association law. The state law — whether it applies to condominiums, cooperatives or homeowner associations — ranks first. So if the condo law in your state specifically allows associations to have renters, your condo board cannot get around that. However, if the law is silent, then the association documents can require owners only.
Next in priority is the declaration of a condominium or the covenants, conditions and restrictions in homeowner associations. In a cooperative, it will be the articles of incorporation.
The next level of priority is the bylaws. They spell out such things as what the board can do, what owners can (and cannot) do and how many board members there should be.
Finally, there are the rules promulgated by the board. An example: If the bylaws say “no pets,” then the board cannot pass a rule allowing pets. But if the bylaws are silent, then the board can enact reasonable rules on pets.
Turning to your question, depending on how the “owner-only occupancy” language in your legal documents reads, one could take the position that a family member might qualify.
While I respect the property manager’s opinion, unless he or she is an attorney, I would ask your association attorney for a legal opinion.
A: The short answer is that a judicial foreclosure requires a judge to review the facts and provide the homeowner an opportunity to present defenses, then the court decides whether to authorize the sale. In a nonjudicial foreclosure, the lender can just advertise that the sale will take place on a particular date, and there is an auction. Depending on state laws and customs, sometimes the sale takes place on the courthouse steps, sometimes in front of the house, sometimes at a private auction company’s office.
Some states require that foreclosure sales take place only after the court makes the decision. However, there are states where nonjudicial sales are authorized, and if the homeowner has defenses, the burden is then on that homeowner to file a suit in court to try to stop the sale.
As a result of the mortgage meltdown several years ago, when foreclosures were taking place all over the country, many states passed laws requiring mediation before any foreclosure can take place.
Talk with your attorney about the laws in your state. But if you are facing foreclosure, don’t just sit back. Be proactive; talk with your lender about a plan in which you can save your house.