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A New Tool in the Condo Collection Kit (NY)

Co-ops have more leverage, but there are ways for condos to collect arrears.  At a luxury Chelsea condominium called the Heywood, the condo board used an ingenious strategy to collect from a unit-owner who owed $100,000 in unpaid common charges,

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Case Update: Wing Street CA v. Kiss the Chef, LLC (IL)

In the case of Wing Street CA v. Kiss the Chef, LLC, the Illinois Supreme Court will review an issue pertinent to the collection of up to six months of a foreclosed owner’s assessments from a subsequent purchaser under Section

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Recent court ruling could mean millions for evicted condo owners (HI)

Condo owners in Hawaii are raising alarms over a recent federal court ruling that found condo associations used the wrong part of the law to file hundreds of foreclosures, some going back nearly ten years.  Those owners fear the ruling

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The Legality of Post-Bankruptcy Condo or Homeowner Association Assessments

A recent bankruptcy case illustrates how bankruptcy affects condominium or homeowner’s association assessments. The Bankruptcy Court for the Southern District of Florida ruled that a condominium association was not in contempt when it attempted to collect post-bankruptcy assessments from debtors

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Wells Fargo’s Nevada Mortgages May Get Top Court Test

A court conflict testing some Nevada mortgage holdings of Wells Fargo and other major banks affected by homeowners’ association liens may be headed to the U.S. Supreme Court ( Bourne Valley Court Tr. v. Wells Fargo Bank N.A. , U.S.,

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Appeals court upholds constitutionality of lump sum association fee statute (LA)

Homeowners in the Eastover subdivision in New Orleans lost an appeal at the Louisiana Fourth District Circuit Court of Appeal, which found a state statute that facilitated the collection of association dues to be constitutional.  In a March 22 ruling,

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Why Condo Associations Are Sweating After A Judge’s Ruling (HI)

It’s probably going to take years to unravel the legal and financial uncertainty now facing condominium associations and law firms that used nonjudicial foreclosures — private sales without supervision by courts — to collect unpaid maintenance fees or other assessments

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Condo Boards Have a New Tool for Collecting Arrears

Court ruling gives condo boards a new way to evict delinquent unit-owners.  When it comes to evicting residents, co-op boards have traditionally enjoyed a bigger arsenal than their condo counterparts. But condo boards are not without their weapons. And that

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Condo association must defend against foreclosure lawsuit

Q: A lender has filed a foreclosure suit against a condominium owner in our complex. The lender also has sued our association. It costs our community money to hire a lawyer, and I don’t see how our association is involved,

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IL App. Court Holds Post-Foreclosure COA Dues Need Not Be Paid Monthly to Extinguish Pre-Foreclosure COA Lien

Reversing a trial court’s ruling in favor of a condominium association and against a mortgagee, the Appellate Court of Illinois, First District, recently held that the Illinois Condominium Property Act’s (“Condo Act”) provision creating a mechanism to extinguish liens for

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Pre-Lien Demands and FDCPA Concerns (CA)

Recovering delinquent assessment debt is one of the more complicated issues that homeowners associations (“HOAs”) face. Fortunately, the Civil Code grants HOAs with significant remedies to recover delinquent assessment debt, including the ability to record assessment liens and to ultimately

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Chapter 13 Plan, Not Texas Law, Governs HOA Payments

A Texas homeowners association that applied Chapter 13 plan payments first to pre-bankruptcy delinquencies, leading to improper late fees, penalties and interest, was penalized by a bankruptcy court March 27 ( In re Daulton , 2017 BL 96621, Bankr. S.D.

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Don’t forget your Declaration: Appeals Court confirms necessity of the Declaration and Covenants in collection actions (IL)

The First District Appellate Court confirmed that Associations must be careful to enter their Declaration and Covenants regarding Assessment default into the record in a lawsuit to collect Assessments. In Blackstone Condominium Association v. Speights-Carnegie, (Feb. 3, 2017), the Appellate

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After the Spanish Court case: Limits of Board authority to maintain collection action highlighted in recent appellate court opinion

In the recent case of 4934 Forrestville Condominium Association v. McKinley, the First District Appellate Court held in the context of an Association’s action to collect delinquent assessments under the Illinois Forcible Entry and Detainer Act, that a Unit Owner’s

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Why Your HOA Needs a Written Collections Policy (AZ)

Some Homeowners Associations are lucky enough to have minimal collections concerns. However some, are constantly dealing the delinquency of homeowners falling behind on dues. No matter where your HOA sits on this spectrum, it is vital for your community to

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Associations Need to Seek Ejectment Rather Than Eviction for Some “Tenants” (FL)

When the Condominium Act was amended several years ago to allow associations to demand and collect rent directly from the tenants of unit owners who were delinquent in the payment of their monthly fees, community associations thought it was an

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Don’t forget your Declaration: Appeals Court confirms necessity of the Declaration and Covenants in collection actions

The First District Appellate Court confirmed that Associations must be careful to enter their Declaration and Covenants regarding Assessment default into the record in a lawsuit to collect Assessments. In Blackstone Condominium Association v. Speights-Carnegie, (Feb. 3, 2017), the Appellate

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Two’s Company, but Three’s a Crowd: A Third Parties Right to Intervene in a Foreclosure Lawsuit

Are subsequent title holders who obtain an interest in real property during the pendency of a foreclosure lawsuit where a lis pendens has been properly recorded (referred to as a “Purchaser Pendente Lite”), entitled to join in the lawsuit to

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What NOT to Do When Collecting HOA Fees

If just a few homeowners aren’t paying their HOA fees it can be felt very quickly in an association’s budget. It can also cause a ripple effect. If too many homeowners fail to pay their HOA fees, lenders might start

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Illinois Supreme Court Agrees to Decide Whether Third Party Buyer is Liable for Delinquent Assessments to Mortgagee’s Subsidiary

According to Section 9(g)(4) of the Illinois Condominium Property Act, any purchaser of a condominium unit who acquires a property either at a foreclosure sale or by post-foreclosure purchase from the mortgagee must pay the last six months’ worth of

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Nevada Supreme Court Departs From Ninth Circuit Ruling And Finds HOA Lien Statute Does Not Implicate Due Process

On Jan. 26, 2017, the Nevada Supreme Court issued a 5-0-2 decision in Saticoy Bay LLC Series 350 Durango 104 v. Wells Fargo Home Mortgage, 133 Nev. Adv. Op. 5, holding that Nevada’s HOA “super priority” lien statute, NRS §

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Your Community’s Formal Collection Policy Actually Benefits Residents. Here’s How.

While many associations are lucky enough to experience very few delinquent accounts, others are not so fortunate. Whether your community is at one end of the past-due spectrum or the other, it is still important for your community to have

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Restrictive Endorsement (FL)

Restrictive endorsements when coupled with payment are still applicable to associations.  As many may remember, The Florida Legislature amended Florida Statutes §718.116 and §720.3085 to include language relating to the applicability of restrictive endorsements, designations or instruction accompanying payments made

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Family forced from home over $150 HOA fee (FL)

A Hillsborough County judge handed down a heartbreaking decision for a Riverview family. The Lopezes are being forced from their home by foreclosure, all because of a $150 missed homeowners’ association payment.  “This is my home and where I grew

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Yes, HOA Can Sell Property for Delinquent Fees (CA)

Howard Rich purchased a single-family residence at an execution sale. The execution sale was conducted to satisfy a judgment against Yung-Shen Steven Lee. Rich was a third-party purchaser. The plaintiff and judgement creditor was Spyglass Hill Community Association, the HOA

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9th Cir. Limits Scope of FDCPA ‘Enforcement of Security Interest’ Exception

The U.S. Court of Appeals for the Ninth Circuit recently held that a notice regarding overdue homeowners association (HOA) assessments contained language that overshadowed and conflicted with the homeowner’s federal Fair Debt Collection Practices Act debt validation rights.  Limiting the

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The Super-Priority Saga Continues – Nevada Supreme Court Holds That NRS 116’s Notice Provisions Are Constitutional (NV)

The Ninth Circuit sent shockwaves through the mortgage industry when it held that NRS 116—the statute allowing an HOA to impose a nominal super-priority lien that can extinguish a senior deed of trust when foreclosed—was facially unconstitutional under the Due

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Letter Warning of Lien Recordation Subject to FDCPA, Ninth Circuit Holds

A law firm’s letter, warning that a lien would be recorded against a woman’s home if she failed to pay her annual homeowners association fees, is not exempt from the Fair Debt Collection Practices Act (FDCPA) as an attempt to

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Nevada Supreme Court ruling upholds nonjudicial foreclosure process

The Nevada Supreme Court ruled Thursday that a nonjudicial foreclosure process used by investors and speculators to acquire HOA properties at bargain basement prices during the great recession does not violate the constitutional protections of original mortgage holders.  The court

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How to deal with homeowners who fail to pay assessments

Q: What can a condominium association do at the first sign of trouble to prevent an owner from declaring serial bankruptcies that are running seven years and counting while the other owners pay the bills?  Read the Q&A……………..

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Court Ruling Gives Condo Boards the Power to Evict (NY)

In a major victory for condominium boards, the state’s highest court has ruled unanimously that a Manhattan condo unit-owner who refused to pay his common charges since 2007 can be evicted from his apartment, The New York Law Journal reports.

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Association Fees and Your Credit

When you can’t, or don’t, make payments on personal loans, your credit is quickly affected. Until now, HOA assessments were not included in your credit score calculation. However, Equifax has now decided to start using this information to help determine

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Possession after Judicial Foreclosure (WA)

Recently, the Division 1 Court of Appeals of Washington issued its opinion in the case of Viewcrest Condominium Association v. Robertson, 2016 WL 7470025 (December 27, 2016). The decision by the Court in Viewcrest will need to be considered when

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Uncollected Assessments: HOA Budgeting for Bad Debt

For the past 35 years, Lake Superior State University publishes a list of “banished” words and phrases. The annual list includes words and phrases that are misused, overused, and generally useless. The 2010 list includes such gems as “sexting”, “tweet”,

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Foreclosures – Enforcement of Judgments – Equitable Redemption (CA)

In 1982, the California Legislature enacted the Enforcement of Judgments Law (“EJL”), Code of Civil Procedure section 680.10 et seq., setting forth the standards for enforcing judgments by writ of execution. The EJL made sales pursuant to foreclosure judgments absolute,

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NH Supreme Court issues key condo financing ruling

In NH Housing Finance Authority v. Pinewood Estates Condominium Association, the question was whether a foreclosing mortgagee could be held liable for the unpaid assessments incurred by a prior delinquent owner. The NHHFA had acquired, in a foreclosure sale, title

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Troubled Tampa-based LM Funding faces class action lawsuit (FL)

In what could be a major blow, a judge has ruled that dozens of condominium associations can collectively sue an already troubled Tampa debt collection company.  Miami-Dade Circuit Judge John H. Thornon recently certified a class action lawsuit that accuses

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Rare Safe Harbor Victory for Homeowner Associations (FL)

In Federal National Mtg. Ass’n. v. Mirabella at Mirasol HOA, Inc., Case No. 4D 15-4792 (Fla. 4th DCA, November 23, 2016), Florida’s Fourth District Court of Appeals relied on specific language in the Homeowner Association Acts’ safe harbor provision to

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Lawyers Can Violate FDCPA by Making Factually Inaccurate Allegations in Bankruptcy Pleadings

Judge Castillo’s case involved a law firm that filed a motion to modify the automatic stay on behalf of a condominium association. The motion alleged that the debtors had not paid condominium assessments after being in chapter 13 for a

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Short Sales and Community Associations

A short sale is a common alternative to foreclosure when a delinquent owner owes lien holders on the property more money than the property is actually worth. A short sale can occur prior to the filing of a foreclosure action,

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What Servicers Must Know About HOA/COA Super Liens

Homeowners associations (HOAs) and condo owners associations (COAs) are different breeds altogether. Many servicers incorrectly assume they can service these properties much like traditional properties, but there are far too many complexities behind HOA/COA super liens that servicers must fully

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Mortgage Foreclosure (FL)

As you may be aware, the first mortgage holder’s lien (mortgage) is superior to that of the Association. Therefore, in the event that a bank files for mortgage foreclosure, even if the Association had a lien in place, if a

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NH Supreme Court issues key condo financing ruling

Sales of condominiums in New Hampshire continue to rise. According to data published by the NH Association of Realtors, sales through September increased 6.9 percent over 2015, on top of 16 percent growth the year before. Meanwhile, average days-on-market for

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Can a Condominium Association Face a Second Foreclosure Suit? (FL)

The Florida Supreme Court’s recent decision in Bartram v. U.S. National Bank Association is instructive for condominium associations and community managers dealing with a unit in foreclosure, including those trying to determine whether or not to appear and defend a

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The 9 Most Frequently Asked Questions About HOA Super Liens

We have heard far too many incorrect assumptions from servicers about how various rules will be applied to liens placed by Homeowners Associations (HOA) and Condo Owners Associations (COA) that we feel compelled to set the record straight. The most

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Just Keep Swimming: Navigating the Waters of a Co-owner’s Chapter 7 Bankruptcy Filing

Bankruptcy matters can be treacherous waters for Condominium Association Boards to navigate. Such issues should, in most cases, be referred directly to the Association’s legal counsel, who should be experienced in handling Condominium collection cases in the bankruptcy context. Nevertheless,

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Bourne Valley Redux (Superiority of title) (NV)

The dispute between lenders and the purchasers at homeowners’ association foreclosure sale regarding superiority of title has embroiled the State of Nevada since at least as early as 2012. Since the issue rose in volume and prominence in Nevada, major

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Management and Administrative Fees: Are They Collectible? (IL)

Oftentimes, management companies will include their own management fees (such as a collection turnover fee or trial witness fee) on the ledger of a delinquent owner’s account when collecting unpaid assessments. As courts are reviewing account ledgers with increasing scrutiny,

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Loan Servicers in the Post-Forelosure World – Are They Entitled to Safe Harbor Protection? (FL)

When purchasing your home, you likely shopped for the lender that would provide you with the most favorable terms for your mortgage loan. While you may have found the perfect lender, it is quite typical for your mortgage loan to

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Condominium Owners Whose Homes Have Foreclosure Action Maybe Helped By Supreme Court Ruling (CT)

Many condominium associations have found that their foreclosures are defective because the association failed to adopt a foreclosure rule, if no rule, failed to vote that a foreclosure be started against the unit.  The Connecticut Supreme Court has ruled that

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