There has been much debate surrounding the super lien in light of House Bill 11-1197 which was derailed this past legislative session.
CR.S. 38-33.3-316(2)(b) provides that the association is entitled to a super lien for assessments which would have come due during the six months immediately preceding the filing of a foreclosure action by an association or a party holding the first Deed of Trust.
House Bill 11-1197 would have expanded the super lien to provide for six months of assessments for each six month period that a foreclosure was pending (i.e. six months would have come due on filing and another six months on the first day of the seventh month, etc.). There was also discussion that would have expanded the six month provision to nine months, permitting the recovery of nine months of assessments coming due prior to the initiation of a foreclosure, every nine months.
The following are some tips to ensure that the association can successfully maximize its chances of recovering its super lien(s):
- Clear and comprehensible ledgers should be maintained which set forth the assessments coming due prior to the filing of the foreclosure.
- The association should promptly respond to any requests by a lender for a statement of the amount owed on the super lien(s). If the request is received via certified mail or hand delivered, the association should ensure that it sends a response within fourteen calendar days of receiving the request.
- A record should be made of any foreclosures which are withdrawn and do not proceed to sale, to ensure the future collection of the super lien.
Stay tuned to our blog for future developments associated with the super lien statute.