Washington D.C. Appellate Court Holds Foreclosure of Condominium Lien Extinguished First Mortgage Despite Condominium Association’s Representations to the Contrary - Lexology: "The District of Columbia Court of Appeals recently held that a condominium’s foreclosure of a “super-priority” condominium lien extinguished an otherwise first-priority mortgage on the property, despite the fact that the association’s notice of sale and deed to the third-party purchaser stated that the sale was “subject to” the mortgage. See Liu v. U.S. Bank Nat’l Ass’n, 2018 WL 1095503 (D.C. Mar. 1, 2018)."
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This association superlien policy is controversial. In this case, I wonder if it will stand up to an appeal, because the association stated that the sale was "subject to" the first mortgage lien.
1 comment:
One does not "admit" a proposition of law.
However I'm all for this - why?
Well it's not because I think a condo should have a superior lien, no.
It's because the spread of the disease known as condominium housing won't stop as long as lenders finance these things and government sponsored entities are willing to purchase loans secured by such trash. When the first mortgage is no longer really a first mortgage then perhaps the financing for this abomination in housing will dry up so that they can't pollute the housing market any further.
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