TBO.com - TBO is Tampa Bay Online

THE QUICK DRAW

ADVERTISEMENT

By RICHARD WHITE

Tribune correspondent

Published: February 22, 2009

Is it true that a condominium association that has filed a lien against a unit owner for unpaid maintenance fees can expect to recoup only six months' arrearages if a bank forecloses on the unit?

We have several delinquencies in our complex and some liens have been filed, although I think the association has only filed one foreclosure action. We are a small project without a lot of money and I have heard that there is at least $50,000 in outstanding maintenance fees. Apparently the unit owners are paying their mortgages, but not paying their maintenance. They probably know just what they can get away with.

If we foreclose and take title, then we are stuck with a unit and its delinquencies and payments, so why would we want to foreclose?

WI

Seminole

The board should have a fast action collections policy, like sending three letters within the first 60 days and then turning the matter over to the attorney to lien and foreclose. In today's economy, you shouldn't look at the debt on the home as you would have in years past.

The objective is to get the home paying as fast as possible. By foreclosing within the first 180 days, you will have more ways to accomplish that. One is to turn over the deed to the bank, which then must start paying the fees. Another is to rent the home until the bank forecloses and use the rent to help pay the lost fees. Yet another is to contact the bank and try to work out a payment plan for the mortgage.

The association attorney should advise the best course of action for your particular community.

If you have other owners not paying on time, fast action on one unit should get their attention.

Richard White is a licensed community association manager. He does not offer legal opinions; any other questions and comments concerning association operations can be sent to Richard White, 6039 Cypress Gardens Blvd., No. 201, Winter Haven FL 33884; or e-

Share this:

Loading Comments...

Email Print

ADVERTISEMENT