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Association Mess - Need Advice

Posted on: 24th May, 2009 05:59 am
I purchased a condo unit within a resort in Michigan - shared lakefront property in 2004. The by-laws clearly favor the developer and owner of the resort. Every year, he tacks on new bills without a vote - but of course, he holds the majority anyway. I feel like I am being conned in a legal sort of way. In 2004, I was making money on rentals. Now - 5 years later, my association dues, are nearly as much as my mortgage. I have $30,000 equity on paper in the place, but it's bleeding me for $950+/month. I put it up for sale - but the owner of the resort - has bylaws so he can be the sole real estate agent as well. Okay - when I looked at the books, etc. in 2004 - things were clean the investment was good. I didn't see a kind of con coming. Now - I'm hurting. Mistake made - feeling the pain. Instead of getting all depressed - I want to start a legal fight of some sorts. However, I am in the beginning phase of my fight an need to learn what to do. I'm reading up on how to start. One idea was to just give the condo back to the bank and be done with it, but I see Michigan allows for deficiency judgment - which would kill the hell out of me, because nobody is going to buy that place at auction with the association costs this guy charges. Which means the difference would be a ton of money - NOPE. I have to find a way to stop this bleeding though as I've taken a 10% pay cut recently to keep my job and I don't want any of my hard earned savings to get poured down this sewer piece of property. I need the money for a potential move / change of job etc. The other problem is - I'm on good terms with the resort owner right now, if I make a move - then my stuff out there becomes a liability. He may try NOT to sell the property (or put little effort in it). He also has a 5% month (yes! 60% APR) penalty if you don't pay your quarterly dues-bill on time. Is that even legal????? I suppose I need a lawyer at this point - but how do I find the right one? This a big mess. How did I get into this? How can I get out without losing all my savings. Any help / advice would be extremely welcome.

Sincerely - Esky
You are right...you need a lawyer at this point.
Posted on: 24th May, 2009 06:02 pm
Do I look for a finance lawyer? Or a specialty lawyer for this? I talked to a different type of lawyer - he said it's such a small amount of money that no lawyer would really want the case. AUGH- Thousands of dollars isn't enough - lol
Posted on: 24th May, 2009 06:29 pm
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