Posts Tagged ‘Banks’

Florida’s Freeway to Foreclosure

February 7, 2013

In a move that would recognize the value HOAs and condo associations add to their communities, Florida is considering a bill that would fast-track association foreclosures.  This would get defaulting/nonpaying owners and slow-to-foreclose banks out of the picture faster and allow the community to ensure that properties are marketable.  Hopefully the result would be a decrease in unkempt, deserted properties stuck in legal limbo for months and years.

It will be interesting to see how it all plays out.  There are some that challenge whether it is fair to require the owner to pay all back assessments in order to challenge the assessment foreclosure in court.  It seems to me that the law should simply distinguish between regular assessments and special assessments, for which the owner had title notice and should pay, and any limited assessments or fines piled on top of that.

Ranking: Brevard top U.S. spot for buying a foreclosure

 

http://www.orlandosentinel.com/business/os-overdue-hoa-bills-20130206,0,2306446.story

 

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Foreclosing on the Forecloser: HOAs take on the banks

August 13, 2012

For most homeowners, foreclosure is the end of the story.  The end of a long, painful story, for most.

 

A slideshow on foreclosure and bankruptcy law basics

 

But many homeowner associations could only hope that foreclosure were the end of the story.  For HOAs, foreclosure usually follows a lengthy period of unpaid assessments, collection efforts, and perhaps ongoing maintenance violations.  The foreclosing bank may even have dragged its feet on taking title until it had a post-foreclosure buyer lined up.  I have tried to summarize foreclosure basics for HOAs here.

In Idaho, this tactic leads to increased liability for the original owners of the property, and probably increased chances of bankruptcy.  For the most part, the bank that takes title following a foreclosure is responsible and pays assessments from the date of the foreclosure forward. However, this is not always the case.

In what is often a David and Goliath story, some HOAs are seeking to even the odds by foreclosing against the bank on their post-foreclosure assessments.  This article makes several good points about the pros and cons of this approach, and the position taken by banks.  It applies as well in Idaho as in Florida.

 

Most of the bank in possession has a strong interest in maintaining clear title so that the property can be sold.  Foreclosure, though a drawn-out and relatively expensive process, puts the pressure back on the bank to get current.

Jeremy O. Evans