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Can a Condo Association Recover Past-Due Amounts After Owner Files Bankruptcy?

When a condo owner in arrears on assessments declares bankruptcy, a condo association often expresses concern about the effect of the bankruptcy on its ability to collect pre- and post-bankruptcy assessments.  The bankruptcy code states that fees or assessments that

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Measuring the health of your community collections process

Collecting money from delinquent homeowners is by far one of the least popular aspects for community association management. For boards, it’s right up there with raising dues and levying special assessments in terms of undesirable duties of the board.  The

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Post-Foreclosure Considerations: When the Association Owns a Unit

If you are a condominium association who is preparing to complete a lien foreclosure on a Unit, you are sure to have many questions about what to expect if you become the owner of the Unit through the foreclosure process.

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Assess the Situation: What is a Considered a “Common Element?”

You may have read in the most recent CAI Law Reporter that an Association in Maryland was not authorized to suspend use privileges, absent such authority existing in the condominium declaration. Elvaton Towne Condominium Regime II, Inc. v. Rose, No.

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We’ve Got a Problem: Statute of Limitations on Long-Term Notes (FL)

A Florida Supreme Court justice Thursday issued a nearly five-page opinion to point out “the latest symptom of a more serious problem”—a misunderstanding over when the clock starts in foreclosure litigation with multiple defaults and suits.  The confusion centers on

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Aggressive Collection Strategies: Using Proceedings Supplementary to Get Paid (FL)

In Florida, Proceedings Supplementary are begun utilizing the procedure found in Fla. Stat. 56.29. The Proceedings Supplementary statute was enacted prior the adoption of the Florida Rules of Civil Procedure. In the recent past this created a lot of confusion

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Bankruptcy 101: Chapter 7 vs. Chapter 13

We have been asked on numerous occasions recently to provide guidance to our community association clients about the effects that bankruptcy has on their collections cases. The most common forms of bankruptcy by owners in the community association context are

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Nevada Supreme Court Rules HOA Super-Priority Liens Can Be Revived after Release

Homeowners’ associations have a more robust tool for forcing mortgage lenders to pay delinquent assessments following a September 14 decision by the Nevada Supreme Court. Nevada HOAs have enjoyed a super-priority lien under NRS 116.3116 for nine months of unpaid

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Case Alert: Emailed Notices of Foreclosure Under In Re Ackah (NC)

In re Ackah: Must Planned Communities Now Serve Notices of Foreclosure Hearing Via Email?  The North Carolina Court of Appeals issued an opinion on September 5, 2017, that appears to add an additional requirement for foreclosure trustees regarding the due

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Faulty Foreclosure Service Results in Lienholder Having to Pay Property Owner (NC)

When a lienholder starts a foreclosure, it usually is focused on getting money into its pocket. Yet a recent opinion from the North Carolina Court of Appeals (In re: Ackah – Sept. 5, 2017) should provide a warning to all

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Unpaid Assessments: Liens & Personal Obligations – Part I

Under state law in Washington and Oregon, Condominium and Homeowner Associations have the authority to adopt and amend budgets, and levy and collect assessments from owners for the common expenses. But it can be confusing what happens when an owner

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Dispute over homeowner dues turns Friendly Valley unfriendly (CA)

Friendly Valley got a little unfriendly Tuesday when members of Santa Clarita Valley’s gated community found themselves unwelcome.  Close to 300 residents living behind the gated and the guard-staffed kiosk of Friendly Valley on Sierra Highway learned Tuesday that their

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HOAs face challenges dealing with deadbeat homeowners (AZ)

Stan Tjaden has lived in an East Valley condo complex for more than 20 years, and it still bothers him to hear about someone not paying their HOA dues.  “We all pay taxes to keep the roads up,” said Tjaden.

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What is the bank’s obligation to pay assessments under the Michigan Condominium Act after a foreclosure?

MCL 559.169 allows for a Michigan condominium association to impose assessments against all co-owners in order to pay for the common expenses that are necessary to operate the condominium. When a co-owner fails to pay assessments, it places a strain

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Laguna Woods Village HOA votes to suspend cable, internet for delinquent homeowners (CA)

The United board on Tuesday, Sept. 12 passed resolutions to increase the late fees and set consequences for various delinquencies in the housing mutual.  United unanimously passed a resolution that will allow the suspension of cable and internet for residents

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HOAs foreclosing on hundreds of Phoenix-area homeowners for as little as $1,200 (AZ)

Homeowners associations, the enforcers of neighborhood paint colors, holiday decorations and trash bins, are leading the latest surge in Phoenix-area foreclosures.  HOAs are foreclosing on a record number of homeowners for as little as $1,200 in missed maintenance payments, according

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5th Cir. Holds Threat of Lawsuit to Collect Partially Time-Barred Debt Did Not Violate FDCPA (TX)

In a split decision, the U.S. Court of Appeals for the Fifth Circuit recently decided that attorneys representing a condominium association did not violate the federal Fair Debt Collection Practices Act by threatening non-judicial foreclosure on debt that was partially

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9th Cir. Holds Federal Foreclosure Bar Preempts Nevada HOA Superpriority Statute

The U.S. Court of Appeals for the Ninth Circuit recently held that the Federal Foreclosure Bar’s prohibition on nonconsensual foreclosure of assets of the Federal Housing Finance Agency preempted Nevada’s superpriority lien provision and invalidated a homeowners association foreclosure sale

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Court case supports collection of unpaid fees (IL)

My Aug. 26 column “teased” that I would address in a future column the circumstances under which the purchaser of a foreclosure condominium at a judicial sale may be responsible for all unpaid sums due from the prior, foreclosed owner.

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Illinois App. Court (1st Dist) Holds 7-Month Delay in Paying Overdue HOA Assessments May Not Extinguish HOA Lien

The Appellate Court of Illinois, First District, recently reversed a trial court order granting summary judgment in favor of a mortgage servicer and against a condominium association (COA) holding that a material question of fact existed regarding whether the servicer

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Everything is “Fine,” So Long as You Strictly Follow Your Documents (FL)

It has long been recognized that liens are statutorily created rights and consequently are strictly construed. What this means in English is that you can’t simply substantially comply with the lien filing laws. If you want your lien to be

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Debt Collections Practices and Laws: Should They Concern Your HOA?

The fairly recent case of Agrelov v. Affinity Management Services, LLC, Case No. 15-14136, (11th Cir., November 9, 2016), is instructive for associations and their managers with respect to debt collections.  In that case, the homeowners were assessed a fine

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Fla. App. Court (5th DCA) Reverses Foreclosure Judgment That Excluded Interest, Escrow

The District Court of Appeal of the State of Florida, Fifth District, recently reversed final judgment of foreclosure entered in favor of a mortgagee that omitted interest and escrow amounts due, and remanded to the trial court to modify judgment

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Unhappy Property (Manager) Loses in South Carolina

“If you think hiring a professional is expensive, try hiring an amateur.” – Anonymous In South Carolina, as in most states, there exist various consumer protection and licensing laws, intended to protect the public from the unauthorized practice of law

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Constantly Changing Condominium Laws (IL)

A recent opinion from the Illinois’ First Appellate District, Country Club Estates Condominium Assoc. v. Bayview Loan Servicing, LLC, 2017 IL App (1st) 162459, provides that “prompt” payment of assessments is required to extinguish presale assessments under the Condominium Property

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Fourth DCA Confirms Association Lien Foreclosure Valid Despite Pending Mortgage Foreclosure (FL)

Despite a slowing in the number of Florida mortgage foreclosure cases, many community associations still face situations where a foreclosing lender fails to timely complete its foreclosure resulting in the property sitting abandoned and not contributing financially to the community.

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28 suits filed against La Bota Ranch homeowners over unpaid HOA dues (TX)

Since May 11, the two homeowners associations of La Bota Ranch have filed 28 lawsuits against homeowners who have not paid their HOA dues, threatening to foreclose on their homes if the dues are not paid.  Hearings for six of

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HOA Super Lien — What is it and Why Should I Care?

In an HOA, owners who fail to pay assessments and other charges owed to the condo or homeowner’s association, will likely have a lien placed on the home by the association. A lien is a legal tool used to protect

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New Technology Means More Options For Community Association Billing And Payments

Over the years, technology has dramatically changed the way community and condominium associations bill and receive payments for owner assessments, sometimes referred to as dues.  When I first started in the business in the late 80s, just about every community

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The Pesky Nuances of the HOA Collection Policy

If the phrase “assessments are the lifeblood of a community association” passed your lips at the last board meeting, you either have 1) a puzzling penchant for perplexing prattle (what?) or 2) your HOA collection policy isn’t keeping up with

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Accelerating Collections – One Way to Help Speed Things Up

Collecting delinquent assessments can sometimes feel like trying to hit a moving target. You get a judgment, but how do you account for the assessments that came due after you filed, or for the payments that the owner may have

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Collections and HOA Dues

In a perfect world, everyone would pay his or her fair share and everything would be just. Unfortunately, this isn’t always the case, and your HOA likely won’t be either. In most cases homeowners are generally good about paying their

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Illinois Appellate Court Clarifies Palm Decision Regarding Association Collections

In Lake Point Tower Condominium Ass’n v. Waller, 2017 IL App (1st) 162072, decided on June 28, 2017, the Association filed a forcible entry and detainer action against Defendant to obtain possession of Defendant’s condominium. Subsequently, Defendant filed a motion

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Can an HOA collect after a mortgage foreclosure?

Q: When there are past-due HOA assessments for a property, and a mortgage lender forecloses on the property and takes title, who can the HOA collect the unpaid HOA assessments from following the foreclosure?    Read the Q&A……………

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Action 9 investigates HOA debt collectors (FL)

A Winter Park woman claims a past-due homeowners association bill for $145 has turned into an astounding demand for $77,000.  Ranya Hamza blames a debt collector that bought old association debts then, she claims, demanded homeowners pay sky-high fees.  

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Supreme Court Leaves Standing Wells Fargo Win on Nevada Lien Law

The U.S. Supreme Court left standing a federal appeals court ruling that could help Wells Fargo and other major banks affected by a Nevada statute covering homeowners’ association liens ( Bourne Valley Court Trust v. Wells Fargo Bank N.A. ,

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Condominium Association Cannot Collect Unpaid Fees from Lender’s Assignee (NJ)

On June 6, 2017, the New Jersey Appellate Division ruled that a foreclosing mortgagee is not liable for unpaid condominium maintenance fees simply because it winterized the unit and changed the locks.  In the published decision Woodlands Community Association Inc.

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Understanding HOA Fair Debt Collection Practices: Practice Tips

If you work for an HOA, serve on its Board of Directors, or own a property covered by one, there are a few things you should know about debt collection practices. So, to help you develop a greater understanding of

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What NC Community Associations Need to Know about Fair Debt Collection

Nearly all Community Associations (“Associations”) must cope with owners who fail or refuse to pay their periodic assessments (also known as “Dues”). When this happens, the Association, typically acting through its property manager, may first attempt to collect the delinquent

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Riverview family wins foreclosure battle with HOA (FL)

A Riverview family has won a yearlong fight with their HOA to save their home from foreclosure.  10News has been following the Lopez family’s emotional battle, after their Riverview HOA foreclosed on their home, all over a missed $150 homeowners

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What NC Community Associations Need to Know about Fair Debt Collection

Nearly all Community Associations (“Associations”) must cope with owners who fail or refuse to pay their periodic assessments (also known as “Dues”). When this happens, the Association, typically acting through its property manager, may first attempt to collect the delinquent

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Bankruptcy basics for community association boards of directors

Over the last decade, community associations (like other businesses) have been forced to navigate the “Great Recession” and continued recovery. The “Great Recession” brought with it a significant increase in the number of personal bankruptcy filings across the country. Even

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Good Collection Practices Protect Lifeblood of Community Associations

Assessments are the lifeblood of every community association. For most associations, it is the sole source of income to pay for common expenses. Therefore, having tools and good practices to maximize collection of assessments are vital not just to survive

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When It Comes To The HOA/COA Lien Process, Misconceptions Abound

Working with homeowners associations (HOAs) and condo owners associations (COAs) often leads to confusion among servicers – and that confusion may lead to problems during the lien process.   uring a recent interview with MortgageOrb, Damon Paxson, vice president of HOA

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Why Associations and Their Managers Need to Be Wary of Debt Collections Practices and Laws

The fairly recent case of Agrelov v. Affinity Management Services, LLC, Case No. 15-14136, (11th Cir., November 9, 2016), is instructive for associations and their managers with respect to debt collections, and the trouble that associations and managers can get

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Mortgage Bankers Assn Joins Amicus Brief on Nevada HOA Case

The Mortgage Bankers Association (MBA) joined the American Bankers Association (ABA) and the U.S. Chamber of Commerce in an amicus brief with the U.S. Supreme Court that supports a request by Wells Fargo Bank to review a Circuit Court of

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Fair Debt Collections Guidance

When the Fair Debt Collection Practice Act (FDCPA), 15 U.S.C 1601, was first enacted, it specifically exempted creditors attempting to collect their own consumer debts. With the enactment of the Consumer Financial Protection Bureau (CFPB), large financial consumer lenders have

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Florida Supreme Court May Decide Fate of Liens Recorded After Foreclosure Judgments

Real estate investors, municipalities, and community associations may gain some clarity about post-judgment liens if the Florida Supreme Court decides to hear Ober v. Town of Lauderdale By-the-Sea, Case No.: 4D14-4597 (Fla. 4th DCA, January 25, 2017). The case has

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New Jersey Bankruptcy Court Finds Lien Held by Homeowners’ Association Is Subject to Modification

The United States Bankruptcy Court for the District of New Jersey recently overruled a creditor’s objection to the debtors’ proposed chapter 13 plan, rejecting the association’s argument that its claim is secured by a consensual lien and may not be

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Florida appeals court reverses decision in condominium lien case

A Florida appeals court recently reversed a lower court’s decision in a case involving liens on condominium units.  The Florida 2nd District Court of Appeals ruled in favor of Business Law Group, et al, reversing the Circuit Court for Pasco

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