Condo assoc relief of stay - questions

[limage]

I am in FL and filed Ch 7 in October. I had my 341 in November and I just waiting for my discharge now.

I am surrendering my condo. Both the association and mortgage company had started the foreclosure process before I filed. They have now both filed for a relief of stay.

My condo association is quite aggressive in the foreclosure. They want possession before the bank- I'm not sure how that works- I think they would have to pay the mortgages off first- but clearly that is not the case.

I am worried that once the stay is granted they will change my locks. I have not abandoned the property and I am still living here. How much time do I have if they are aggressive?

What kind of time line can I expect? FWIW, the association had served me with the foreclosure about 15 days before I filed.

[JustFileSuit]

A relief from stay is only granted if the Movant (the condo association) can demonstrate that they are entitled to relief, and that happens when they can demonstrate a deterioration in their position. If you continue to make condo association payments post-petition then the ability to obtain relief from stay pretty much evaporates. You have not specified what they allege, so it is hard to say. Typically they just allege that their position becomes further harmed and you are not making future payments.

The reason they want to be "first" in the foreclosure is that then they can sell the unit and pay off the mortgage and recover some of their fees. That assumes that the condo is not hopelessly underwater and that there actually is a market for it. If there is no market and it is underwater, then more logically someone of the Board of Directors just personally dislikes you and is using the condo funds to hammer at you.

Just obtaining relief from stay does NOT mean that the association gets possession of the unit. they still have to go through the foreclosure process, which you can contest, and which requires a trial (or "Hearing".). All that takes some time. then ultimately if the association prevails, then the association gets a Judgment and then has to enforce the Judgment. They cannot just "change the locks" unless you abandon the premises. After the Judgment, there will be an eviction, or a Sale of Premises, and only then do you get the toss.

If you want to defeat the condo association all you have to do is make the post-petition condo association payments and the grounds for the motion for relief are challenged. You do have to file some papers, as an Objection to Relief from Stay, and meet the various allegations that they have made; unless you are doing something egregious, such as running a chicken-slaughtering operation out of the basement of your condo, it is only about money. If you pay (post-petition), you stay. Until the bank gets around to their motion for relief and their suit in state court, trial, judgment, and eviction, of course.

[justbroke]

I was writing a response, but JustFileSuit seems to have hit the highlights of what I actually was writing.

[limage]

Thanks JFS. You answered all of my questions. I'm glad I won't be tossed out. I read the petition and it made me look like I was destroying the place so I am sure the motion will be granted. I have no intentions to pay any dues.

I am very underwater, but I have a theory as to why they are foreclosing- I believe the management company makes a killing on foreclosures- and they are the ones that pushed the foreclosure (I still get meeting minutes). Interestingly, they did not even serve my first mortgage, so I wonder if they thought I only had one mortgage of 50k (not knowing about the other 208k). I'm glad I know I can stay a little while longer 'free'.

Thanks again!

[AngelinaCatHub]

Thanks JFS. You answered all of my questions. I'm glad I won't be tossed out. I read the petition and it made me look like I was destroying the place so I am sure the motion will be granted. I have no intentions to pay any dues.

I am very underwater, but I have a theory as to why they are foreclosing- I believe the management company makes a killing on foreclosures- and they are the ones that pushed the foreclosure (I still get meeting minutes). Interestingly, they did not even serve my first mortgage, so I wonder if they thought I only had one mortgage of 50k (not knowing about the other 208k). I'm glad I know I can stay a little while longer 'free'.

Thanks again!

Thinking you only owe 50k, and after all that trouble and greed, I would like to be the fly on the wall to see that they are stuck with 258K. LOL. 'Hub

[JustFileSuit]

I'm glad I won't be tossed out. I read the petition and it made me look like I was destroying the place so I am sure the motion will be granted.

NOTE CAREFULLY: If the "Motion" contains untruthful comments and allegations, that you are destroying the place, and you want to utterly defeat the Motion, AND collect some cash to boot, then proceed as follows:

1. take pictures of the unit to counter the specific allegations that youare destroying the place.

2. File an Objection to Motion for r3elief from Stay, and cite as grounds that the Movant Condo Association has not been fair and candid with the COurt, and that the Movant has filed allegations that are knowingly untruthful. THEN: add in your Motion a citation to the case-law, that being: Keystone Driller Co. v. General Excavator Co., 290 U.S. 240, which is a Supreme Court case that recites that a party that brings to the Court a falsity "shall have the Court House Doors shut against him in limine." [at 245]. Now roughly translated: the Movant Condo Assn lied to the Court about your destroying the unit, and thus because they brought an untruth before the Court in an effort to induce the Court to rule in a certain way, and were not fair and candid to the Court, not only should the Motion be Denied, but they should be barred from all future Motions. Further, you also file a Motion to Strike the Proof of Claim, reciting the same grounds, and - guredss what? - the BK Court will likely grant it! And then you file a Motion for Sanctions, and ask the Court to award a money penalty, and - guess what? - the Court will likely grant THAT too!. Now you get to hose the Condo Association for some serious bucks.

3. Ask for cash damages in conformance with the Ruling of In RE Nosek, (I forgot the cite but it is on the Internet), USBC 1st Cir. MAss., Judge Rosenthal - he awarded $500,000 against the Movant as sanctions. Always nice. BUT you will have to do it in the form of an "Adversary Proceeding" to get the money, as the Court cannot award those sanctions outside of a finding of fact within an adversary proceeding. Check it out.

Meanwhile, you get to live there, pay nothing, and collect damages from the Condo Association - even probably directly from the Directors themselves, if you name them as respondents individually in your adversary proceeding. Moral for creditors or those alleging to be creditors; don't mess around inside the USBC, the Judge will get grouchy and whack you.