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Typically, mortgage servicers are in a unique position of power when it comes toasserting lien position as long as the proper title work and front-end activity takesplace. With the exception of tax liens, virtually all other lien interests securedafter the recordation of the mortgage lien are inferior to the mortgage lien. Lawsenacted in 16 states and the District of Columbia spoil the servicers position ofpower, as community association liens are granted senior lien positions undercertain circumstances involving non-payment of dues, these liens are calledSuper Liens. For all general purposes, these Community Associations havebeen able to affirm that they act as mini-government bodies in the day to daymanagement of their properties and the association dues, are in fact a form oftaxation.

The super- lien statutes vary from state to state, but can be categorized intothree main groups segmented by statute type.

1) Expansive Super-Lien StatutesAlabama, Alaska, Colorado, Connecticut, Minnesota, Nevada

Statutes in these states are based on section 3-116 of the UniformCommon Interest Ownership Act (CIOA). Section (b) of the statutespecifically states that, with some limited exceptions, communityassociation liens for non-payment of dues are prior to all other liens andencumbrances on a unit. The lien amounts are typically (see table below)limited to six months of delinquent dues. The provision allows for thespeedy foreclosure of the unit without the need for further notification ornotice to borrower, but with reasonable notice given to all lien holderswhose interest is affected.

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Applies to first mor

2) Limited Super-Lien StatutesPennsylvania, Rhode Island, Washington, Washington, D.C.

Statutes in these states are based on CIOAs predecessor, the UniformCondominium Act. The super-lien status applies only to unpaidcondominium association dues and not to those due to cooperatives,PUDS, or other community associations.

State Amount of Lien Special Circumstances

AL Six months prior dues

Applies to first mortgage loans only

Atty fees and costs included in judgmentamount

AK Six months prior dues

Applies to first mortgage loans only

Atty fees and costs not included in

judgment amount but are typicallycollected in the foreclosure.

CO Six months prior dues

Applies to condos only

Applies only to assessments due after6/30/1992

CT Six months prior dues plus HOAspecial assessments

Applies to first and second mortgageloans

Atty fees and costs are recoverablethrough foreclosure

MN Six months prior

dues

Applies only to first mortgages recorded

after June 1, 1994.NV Six months prior dues

Applies to first mortgage loans only

WV Six months prior dues

Applies to first mortgage loans only

Notice must be given to unit owner

Notice of lien must be recorded inappropriate Land Records

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3) State Specific Statutes

Arizonao Super-lien takes priority of all liens except first mortgage liens

Floridao Priority is limited to first mortgages taking tile by foreclosure or deed-in-

lieu on loans originated after 04/01/1992. If a condominium declarationmade references to future amendments to the Florida CondominiumAct, priority may be granted in cases where loans were originated priorto 04/01/1992.

o The amount of the super-lien is limited to the lesser of a) six month

prior dues or b) one percent of the original mortgage debt (onlyavailable if the first mortgage joins the association in the foreclosureaction)

o If the association initiates the foreclosure action, it may also recover

attorney fees.

Massachusetts

State Amount of Lien Special Circumstances

PA Six months prior dues

Applies to first mortgage loans only

Atty fees and costs included in priorityclaim

RI Six months prior dues

Applies to first mortgage loans only

Atty fees and costs included in priority

claimWA Six months prior

dues If the association seeks to foreclose by

non-judicial process, the super-lienpriority is not applicable.

DC Six months prior dues

Applies to first and second mortgageloans recorded after 03/07/1991

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o Specific notice must be given to first lien holder in order for attorney

fees and cost to be collectable at time of lien enforcement by thecommunity association.

o Line amount is limited to six months prior dues and first mortgages

only.

New Jerseyo Super-lien priority is not limited to first mortgage, and is applicable to

any prior lien.o Super-lien must be recorded prior to foreclosure action of a prior

mortgage in order for priority to be effective.o Limited to six months prior dues

o Super-lien status is effective only once every five years over the same

mortgage.o Super-lien is only effective on loans recorded after 04/01/1996.

Oregon

o There is no six month prior due limit. Amount of lien can be for allunpaid charges.

o Super-lien status affects all previously recorded mortgages

o All the following conditions must be met:

Lender is given 90 day written notice of unit owners default copy must be recorded in land records

The notice must specifically state the intent to assume lienpriority

The lender has not already initiated foreclosure proceedings

New York

o Super-lien takes priority of all liens except first mortgage liens