In the event of a lien being wiped out, what can associations not collect for?

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When a lien is wiped out, this means that the association's legal claim against a property has been removed, usually through foreclosure or other means. As a result, the association loses its ability to collect any debts associated with that lien.

In this context, while associations may typically seek recovery for past due assessments and interest, any fees associated with late payments, such as late fees or interest accrued on those past due assessments, cannot be collected once the lien has been eliminated. This is because all financial obligations that were secured by the lien are extinguished, thereby precluding collection of additional fees that depend on the underlying obligation being valid and enforceable.

On the other hand, the principal assessments, whether or not they were part of the now-invalidated lien, generally refer to the basic dues owed by the property owner to the association and may still be collectible as a separate matter unless specifically extinguished. Legal fees incurred could also be separately pursued depending on the circumstances surrounding the lien and the legal processes involved. This shows that while associations maintain some rights to collect certain types of debt, late fees and interests are not among them once a lien no longer exists.

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