A bill was introduced in the Delaware legislature to expand the Super Priority Lien Statute.
Chad Toms with Whiteford, Taylor and Preston did a quick synopsis of the possible changes:
- Under subsection (b), the priority of any assessment lien over a first or second security interest [ex. mortgage] is increased from 6 months to 10 years , with a cap of $2,500.00.
- Under subsection (b), if the Association records a lien for unpaid assessments, the lien will not expire for 96 months as opposed to 60.
- Under subsection (e), the automatic lien for unpaid assessments is being increased from 3 years to 5 years to expand the super prior lien to the lesser of $2,500.
Click here for a copy of HB254. This legislation could help Delaware associations to recover lost income due to foreclosures.
Thanks for reading.