TBO.com - TBO is Tampa Bay Online

Taking right steps doesn't always ensure success

ADVERTISEMENT

By RICHARD WHITE

Tribune correspondent

Published: November 15, 2009

Our association has two owners who have had habitual delinquency. Our board hired an attorney, put a lien on the properties and began foreclosure proceedings.

One of the units almost went all the way to the foreclosure sale, but the night before the sale, the owner filed bankruptcy and now everything is on hold. The second owner had a foreclosure hearing but the judge felt sorry for her because she cried and cried. The judge gave her an extension of 30 days and a second hearing. The owner deposited $1,000 with the judge to show good faith, and the judge seemed to want to set up a payment plan for her.

Board members attended the second hearing, but the owner did not. The judge signed the final summary judgment and now a sale date will be set. I would not be surprised if this owner files bankruptcy, too.

We have paid a lot of attorney fees that we can ill afford and now we will probably never get much of our money back. In the meantime, these two owners are getting free water, free cable TV, free garbage pickup, free landscape care and free use of amenities, all paid for by the other owners. What is an association supposed to do?

S.C.

Miami

I would give you a pat on the back and say the board has done a good job. Bankruptcy is the one thing that stops the foreclosure procedures. You have taken the right steps and made every effort to collect the delinquent accounts. Make sure that your attorney stays on top of the bankruptcy case.

If you decide to cut services, run it by your attorney first. The condominium act does not allow restricting services, so your attorney will need to ensure it can be done legally.

Keep your members informed of the actions being taken by the board. You can discuss the matters at board meetings or in a newsletter but not list names. Refer to the cases in general terms.

Not all collections will favor the association but you must take steps as a common action even if you do not collect. I call it a cost of doing business.

Can an association member request to receive monthly financial statements from the management company? We had a problem with the management company - one of its employees was stealing money from HOA accounts - and I am concerned.

A.S.

Naples

Any member can ask to inspect the financial records by sending a letter to the board, but if you ask for a copy, they can charge a reasonable copy cost. You must send a letter each month to obtain that month's reports.

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 33884-4115;

Share this:

Loading Comments...

Email Print

ADVERTISEMENT