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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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Chapter 13 Bankruptcy: How Does it Affect Condominium Associations?

Condominium owners’ associations are unique under Florida law—particularly when it comes to the collection of delinquent assessments and liability. The already complicated bankruptcy process thus becomes even more complex when a condominium owner with unpaid assessments is involved. Assessments that

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What Happens When Fellow Owners Don’t Pay HOA Dues

As a homeowner in a planned community, you might enjoy using the perks in your development, such as the common swimming pool, parks, fitness room, or clubhouse. You also know you must pay for those jointly owned benefits, in the

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3 Tips for Dealing With Community Debt

While many homeowners may gripe about the monthly dues they must pay to be part of an HOA, those dues are actually quite necessary for keeping the neighborhood nice and pleasant. Unfortunately, some residents fail to make their payments, so

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Community Associations Suspending Use Rights for Common Elements, Amenities (FL)

In 2010, at the height of the recent foreclosure crisis, community associations in Florida gained an effective tool to aid them in their efforts to collect upon delinquent assessments. It was at that time that the legislature amended Florida law

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Ruling Quashes Lingering Questions on Partial Payments to Condo Associations (FL)

Two years ago a ruling by the state’s Second District Court of Appeal created a major wrinkle in the acceptance of partial payments by condominium associations when the payments had been endorsed and presented as full and complete remittances of

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Automating HOA Collections

One of the biggest expenses and hassles for a homeowner association is collecting the regular homeowner fee. Every month, checks, money orders and cash are processed, tallied, bank deposits made and books posted. Then, letters are sent to those that

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Sperlonga begins reporting Homeowner and Condominium Association (HOA) Assessment Payment Data to Equifax

Sperlonga Data & Analytics, a data aggregation business for non-standard credit data sources, begins reporting homeowner and condominium association (HOA) payment and account status data to Equifax Inc., a leading provider of information solutions and global insights.  For associations that

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Fla. App. Court (2nd DCA) Holds Non-Party HOA Not Subject to Foreclosure, HOA Lien Not Limited

The District Court of Appeal of the State of Florida, Second District, recently reversed a summary judgment in favor of a mortgagee in two consolidated actions for declaratory and injunctive relief regarding the extent of the mortgagee’s liability for unpaid

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Important Ruling for Associations Seeking to Foreclose in Advance of Lenders

Community associations and their attorneys are applauding the recent ruling by the Fourth District Court of Appeal in Jallali v. Knightsbridge Village Homeowners Association, which eliminates an unintended roadblock that was being used to derail association foreclosure cases throughout the

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Late Fees and Delinquency in a Condo Association

One constant challenge in Condo Associations is the issue of delinquency and debt collection. Homeowner’s Association or Condo Association fees, also called “general assessments,” are the financial lifeblood of your Association. While you may have alternate revenue streams, general assessments

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Accord And Satisfaction: Florida’s 2nd DCA Overturns St. Croix Confirming Condominiums Can Accept Partial Payments Without Risk Of Compromising Claim

Recent assessment disputes between condominium associations and unit owners has resulted in a clarification of a Florida law. The clarification changes the way that acceptance of money intended to be accord and satisfaction is understood by the court in the

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How priority liens work

Q:  I have been hearing the concept “priority liens” but do not understand exactly what it means. Can you explain?   Read the Q&A………..

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Nevada Supreme Court hears case on real estate crisis foreclosure sales

A case that could affect the validity of thousands of Las Vegas foreclosure sales stemming from the real estate crisis that began nearly a decade ago was heard Thursday by the Nevada Supreme Court.  The court is now expected to

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Nevada Supreme Court Strikes Significant Blow Against HOA Super-Priority Foreclosure-Sale Purchasers

In September 2014, the Nevada Supreme Court held that an HOA could foreclose on its nominal super-priority lien and extinguish a senior mortgage in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., a ruling that initially seemed cataclysmic to

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In re Jackson (collections – bankruptcy)

The Sixth Circuit B.A.P. holds that the bankruptcy court abused its discretion in awarding sanctions against a creditor for violation of a discharge order in the individual’s Chapter 7 bankruptcy case. The condominium association rescheduled a sheriff’s sale of the

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High court to hear Bonner County case (ID)

First District Judge Barbara Buchanan entered a judgment in favor of the Pend Oreille View Homeowners’ Association which granted it foreclosure of homeowners’ association liens against property owners who are members of the association.  The association filed liens against the

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Dealing with Bad Debt in Community Associations

Occasionally, homeowners can’t or simply don’t pay. When that happens, you do have options, but even with a lien, there is likely to be some amount owed that you aren’t able to recover. Leaving bad debt on your books for

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Nevada Fed. Court Denies Class Cert. on ‘Ascertainability’ Grounds, Confirms Fannie/Freddie Liens Not Extinguished by HOA Foreclosure

The U.S. District Court for the District of Nevada recently confirmed that a homeowner association’s foreclosure of its superpriority lien cannot extinguish a property interest of Fannie Mae or Freddie Mac while those entities are under the Federal Housing Finance

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For condo owners in trouble, repayment plans a good idea

Community association homeowners are obligated to pay assessments, usually monthly or quarterly, to maintain the common elements of the property. If they don’t, they could lose their homes. The Illinois Forcible Entry and Detainer Act allows associations to get court

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Homeowners: From $150 HOA fee to foreclosure (FL)

Hillsborough County homeowners are battling their HOA in a foreclosure fight, but one missed payment could cost the family their home.      Read the article…………

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Associations can once again foreclose their assessment lien after a lender commences its foreclosure

Then, on June 29, 2016, Florida community associations had a very good day because of the 4th DCA’s opinion in the case of Jallali v. Knightsbridge Village Homeowners Association, Inc., in which Kaye Bender Rembaum was instrumental as legal counsel

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HOA Fees and Credit Ratings

Unpaid HOA fees not being reported to credit bureaus is most likely to soon begin changing. Credit data aggregator Sperlonga has decide to begin collecting this data and reporting it to Equifax. One of the three major credit-reporting agencies. This

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Show Me the Money: Collections, Foreclosures, Evictions

The first of the month rolls around and it’s time to pay the monthly dues that keep the building operational. Repairs might need to be made, maintenance done, bills paid to keep all the common elements running and those dues

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4TH DCA Corrects Prior Ruling and Clarifies Limited Application of Quadomain Decision

In what constitutes great news for community associations in Florida, the Fourth District Court of Appeals has clarified its prior ruling from 2012, U.S. Bank National Association v. Quadomain Condominium Association, Inc., which has been causing problems to community associations

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