Common Charges Lien at Condo Not Extinguished by Foreclosure

Common Charges Lien at Condo Not Extinguished by Foreclosure

Description Connecticut high court held that the unpaid common charges of condos were not extinguished when the mortgage holder foreclosed on the condos. The condo association can sue for unpaid common charges after foreclosure for unsatisfied debt.

Topic Real and Personal Property

Key Words Condominiums, Common Charges Lien, Foreclosure

C A S E S U M M A R Y

Facts Linden, a condo owners association, sued McKenna, owner of twelve condos in the association, to collect unpaid common charges, secured by a lien, of $75,000. Trial court issued a strict foreclosure judgment against McKenna. The holder of the mortgage on McKenna's condos took priority, redeemed the condo units, and paid Linden $15,000, leaving an unpaid debt of $60,000. Linden moved to recover that sum but the court rejected the motion, holding that the debt priority issue had been settled. Linden appealed.

Decision Reversed. After the foreclosure had occurred, Linden could proceed on the basis of breach of contract for unpaid common charges. That right was not extinguished by the foreclosure proceeding. The mortgage holder could not defeat the common charges lien simply by taking possession of the condos. "Unlike a mortgage foreclosure judgment, a judgment of foreclosure on a judgment lien does not extinguish the original judgment, which remains valid as to any uncollected portion."

Citation Linden Condominium Association, Inc. v. McKenna, -- A.2d -- (1999 WL 39791, Sup. Ct., Conn.)
or
726 A.2d 502 (Sup. Ct., Conn., 1999)

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Common Charges Lien at Condo Not Extinguished by Foreclosure
Description	Connecticut high court held that the unpaid common charges of condos were not extinguished when the mortgage holder foreclosed on the condos. The condo association can sue for unpaid common charges after foreclosure for unsatisfied debt.
Topic	Real and Personal Property
Key Words	Condominiums, Common Charges Lien, Foreclosure
C A S E S U M M A R Y
Facts	Linden, a condo owners association, sued McKenna, owner of twelve condos in the association, to collect unpaid common charges, secured by a lien, of $75,000. Trial court issued a strict foreclosure judgment against McKenna. The holder of the mortgage on McKenna's condos took priority, redeemed the condo units, and paid Linden $15,000, leaving an unpaid debt of $60,000. Linden moved to recover that sum but the court rejected the motion, holding that the debt priority issue had been settled. Linden appealed.
Decision	Reversed. After the foreclosure had occurred, Linden could proceed on the basis of breach of contract for unpaid common charges. That right was not extinguished by the foreclosure proceeding. The mortgage holder could not defeat the common charges lien simply by taking possession of the condos. "Unlike a mortgage foreclosure judgment, a judgment of foreclosure on a judgment lien does not extinguish the original judgment, which remains valid as to any uncollected portion."
Citation	Linden Condominium Association, Inc. v. McKenna, -- A.2d -- (1999 WL 39791, Sup. Ct., Conn.) or 726 A.2d 502 (Sup. Ct., Conn., 1999)