Condo unit placed a 35k special assessment in which case caused me to fall back on monthly assessments. I am currently undergoing a short-sale with the lenders. Meanwhile, I am still in possession of the property and have let my 89 year old grandfather live there rent free. Today we got a notice from management office stating that tenant needs to pay rent directly to the office. What recourse should i take being that he is not a tenant and no rents are collected?
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They will require you to pay his fair market rent then.
They are preparing to seize the place. If you don't want to give it to them you need an attorney, like yesterday.
Since he is a relative and pays no rent, then no rent needs to be paid to the association. It is a difficult because of the economy and for all the foreclosures that associations are not receiving assessments. Since they are requesting direct rent payments (legal now, if paperwork is proper), you need to prove that your close relative is there and not a renter. They will probably threaten legal action, but since there is no rent paid, no rent needs to be paid directly to the association. You may wish to consult an attorney for advice. Usually, the first consult is free.
Good luck
You simply need to tell the association members, that the condo is still your condo, until it is legally no longer yours because of foreclosure action or a sale has taken place, you would determine who pay rent and whom to pay this rent to. Your name is still on the property deed.
The condo association is not in a legal position to tell any one staying there they are required to pay rent to them. Until the property has legally transferred ownership to the association you might tell them to but out of your business.
For legal matters you should consult with your attorney.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
Try telling them he's a relative who does not pay you rent. Good luck with that and get ready for a lawsuit.