WI Sup Ct Invalidates HOA Policy That Revived a Lien Eliminated by a Foreclosure Sale

Wisconsin Supreme Court decision (April 29, 2016).

This case involved a dispute between a lender, who obtained title to a condominium through a judicial foreclosure sale, and a homeowners association (“Association”) over the enforceability of an Association policy that forbids subsequent unit owners from utilizing the Association’s recreational facilities until all assessments of the former owner of the condominium are paid in full.

The lender, Walworth State Bank (“Lender”), took title to the condominium in question pursuant to a foreclosure action and a subsequent sheriff’s sale of the property. Lender subsequently entered into[…]