Keough & Moody, P.C.


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Volume 4 Number 2February, 2015 
In This Issue
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This month we are focusing on collections.  Our feature article discusses the importance of detailed information that should accompany a collection file when turning an account over for legal action.  

Our "What's the Difference" topic this month is In Rem v. In Personam, as they relate to judgments in forcible entry and detainer cases (FED).  And of course, our newsletter would not be complete if we didn't provide you the opportunity to learn more about collections by offering educational seminars.

Check out our event schedule below for information on upcoming events and education opportunities. 

It is our pleasure to provide you with this newsletter and the information therein.  We welcome your suggestions for articles or other content which may benefit you.  Please feel free to respond to this message and we will gladly consider all comments. 


Lindsey Daehnke
  Marketing Coordinator
   Keough & Moody,P.C.

Help Me, Help You: 
A check-list for turning over accounts for legal action.
By Rachel Nagrant

You have one or more unit owners who have not paid their assessments. The Board has decided to proceed with legal action. Now what? In theory it seems pretty simple, you forward the account information to the attorney's office. However, there are steps that you can take when turning an account over that could save the Association attorney's fees in the long run. Therefore, below you will see a check-list of common information that should be given to the attorney's office when beginning the collection process:

1. The unit owner has an off-site address. It is very common that unit owners have additional addresses, aside from the unit. Before a lawsuit can be filed, Illinois Law requires Read more

Learn more about collections, foreclosure and bankruptcy at our 
"Basic Collections" seminars on 2/19 and 3/6.  
See below for details and registration. 

What's the Difference:
In Rem v. In Personam
By Dawn Moody
When an association files a case in a forcible entry and detainer (FED), it generally seeks the entry of both an
in rem and
in personam judgment. If you did not take any Latin classes, these terms may mean nothing to you. Let us help explain the difference.

An in personam judgment (or personal judgment) is a judgment against the person (defendant). Therefore, this type of judgment may be enforced against certain assets of that person, including his/her wages, bank accounts or other personal property through garnishment or citation proceedings. In order for the association to obtain such a personal judgment  Read more

Learn more about post-judgment collections at our 
"Advanced Collections" seminars on 2/20 and 3/5.  
See below for details and registration. 
Case Law Update:

1010 Lake Shore Association v. Deutsche Bank National Trust Company, 2014 IL App (1st) 130692


Bank's Obligation to Pay Assessments

Case Summary:

Last year, a Second District Court of Appeals case came out that created issues for associations trying to collect assessments after a foreclosure if they were not properly named as a defendant, with the court stating that it did not matter if the condominium association was named if the bank paid the assessments coming due after the foreclosure sale.  In an opinion issued by the First District of the Court of Appeals, a bank was obligated to pay the entirety of the assessments that were due even if the association was properly named in the foreclosure, if the bank did not pay the amounts coming due after the sheriff sale.  In that case, the bank failed to pay approximately 23 months of assessments after the sheriff sale.  Because of this failure, the court made the bank responsible for more than $40,000 in assessments that came due prior to the sheriff's sale. 


It is not clear at what point the bank has to pay the assessments coming due after the sheriff sale to avoid having to pay the assessments that should have been extinguished in the foreclosure case.  9(g)(3) of the Condo Act only makes the bank responsible for assessments that come due after the sale provided that the sheriff's sale has been confirmed by the court.  If the bank does not pay assessments coming due after the sale in some reasonable time after the order confirming the sheriff's sale, the association should strongly consider pursuing collections.


Case Update:

In 2014, the First District of Appeals held in 1010 Lake Shore Association v. Deutsche Bank National Trust Company, 2014 IL App (1st) 130692 that a lender was responsible for payment of common expenses owed by the previous owner due to its failure to pay assessments as required by the Illinois Condominium Property Act following foreclosure of the unit. As previously discussed, this case left a number of unanswered questions, such as when is it too late for a bank to pay common expenses and extinguish the lien.  Deutsche Bank has since appealed this ruling to the Illinois Supreme Court, which has agreed to hear the case.  We hope that the Illinois Supreme Court will merely clarify the ruling, as opposed to reverse the same.  This case and its current impact on Illinois condominium associations will be discussed in depth at Keough and Moody's Advanced Collection Seminar.  

Upcoming Opportunities 
to meet attorneys and staff from

Keough & Moody P.C. include:


Keough & Moody events:
KM seminars are free to attend.  
Click on the date to see more 
information or to register. 

Last chance to register for this week's seminars!
Collection Basics for Associations
Thursday, February 19th   6-8pm
Friday, March 6th 9:30-11:30am

Review (or learn) the basic processes involved in the collection of past due assessments. Attorney Dawn Moody will discuss the step-by-step actions taken and considerations made in each collection matter. Topics will include:

*The importance of a formal Collection Policy Resolution
*Forcible Entry and Detainer Process
*The Foreclosure Process
*How Bankruptcy impacts Collections

Advanced Collections for Associations
Friday, February 20th 9:30-11:30am
Thursday, March 5th 6-8pm

Learn the advanced options available to associations in the collection of past due assessments. Attorney Dawn Moody will discuss remedies available to the Association after a judgment has been obtained through use of the Forcible Entry and Detainer process. Topics will include:

*Renting out units to recover the account balance
*Post-judgment Collection Actions
*Collection after Foreclosure
*How to Collect despite a Bankruptcy

New Attorney
Keough & Moody, P.C. is proud to welcome Jonathan Wassell to its team of attorneys.  Visit our website to see Jonathan's profile.  

New Website

Check out our new website at


  Keough & Moody, P.C. ("Keough & Moody" or "we" or "us") provides its newsletter for informational purposes only. The information contained in this newsletter is not legal advice.  Your communication with us through this Newsletter, or by other means, does not create an attorney-client relationship between us. Please do not disclose any confidential information to us in response to this newsletter, or otherwise, because we will have no obligation to keep that information confidential unless and until a formal attorney-client relationship is established with you.  ATTORNEY ADVERTISING MATERIAL.