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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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Be Prepared: How to Avoid the Super-Priority Trap

Benjamin Franklin once said, “By failing to prepare, you prepare to fail.” Servicers can face significant obstacles in preservation of their rights vis a vis assessments by homeowners’ associations and condo associations (a “property association”). The most important action servicers

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Condo associations careful about collecting can weather foreclosures

The foreclosure frenzy hit homeowner associations hard and fast, but they may be better prepared for the future because of it.  More than 6.3 million Americans lost their homes to foreclosure between 2006 and 2016, according to real estate data

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Nevada Supreme Court Clarifies Limits to its SFR Investments Decision

On June 22, 2016, in Wells Fargo Bank, N.A. v. Premier One Holdings, Inc., the Nevada Supreme Court rejected this argument, clarified that SFR Investments has limitations, and reversed and remanded a district court’s order granting a purchaser’s motion for

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Assessment Collections in the Wake of the Huntington Case

Collecting assessments has never been an easy job. There are pitfalls lurking around every corner and innumerable requirements waiting to be missed. To ensure a clean foreclosure process, extreme diligence and care must be taken. In the wake of the

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Does changing the locks on a foreclosed Delaware condo make the mortgagee liable for condo fees?

A decision of the Delaware Court of Common Pleas is worrisome for mortgage lenders. In 1401 Condominium Association v. Wells Fargo Bank, 2016 WL 1734104 (May 2, 2016), the court rejected Wells Fargo’s attempt to dismiss a condominium association’s claim

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Some Banks Are Siding with Condos in the Battle Over Super Liens

The argument about condominium super liens has been characterized as a battle between condominium associations, who support super liens, and bankers, who oppose it. But that description isn’t entirely accurate.   Read the article…………..

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What Are Super Liens and Which States Have Them?

A lien is money you owe to someone that has been placed on your property. A common example of a lien on your home is your mortgage. If you live in a community with an HOA, your HOA can also

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Is A Debtor Personally Liable For Assessments Accruing After A Chapter 13 Bankruptcy? Recent Bankruptcy Rulings Give Conflicting Answers

For all parties involved, bankruptcy can be a convoluted and confusing process. When debts are owed to community associations, questions arise as to how to treat pre-petition assessments (assessments incurred prior to the bankruptcy filing) and post-petition assessments (assessments incurred

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FHFA Vows to Keep Fighting HOA Super-Priority Liens

The Federal Housing Finance Agency (FHFA) has reaffirmed its support of authorized servicer reliance on the Housing and Economic Recovery Act (HERA) of 2008 in foreclosures involving homeowner associations (HOAs) and super-priority liens, saying it will “aggressively” fight any HOA

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HOA Fees Now May Affect Credit Scores

A major credit reporting agency says it will soon take into account homeowner association fees. Home owners who are late on payments may soon see the effect on their credit score.    Read the article…………

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The Doctrine of Accord and Satisfaction

Should you or should you not accept a payment for less that the full amount owed when it is indicated to be for full payment? It is always best to not accept a check for less that the full amount

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Massachusetts Court Rules for Condos, Against Banks in Superlien Battle

The underlying dispute began when the Brittons, owners of a unit in this Lexington, MA condominium community, withheld their monthly common area fees to protest fines levied on them for violations of parking rules with which they disagreed. The condo

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Illinois Appellate Court Determines Payment of Post-Judgment Attorney’s Fees Is Condition Precedent to Regaining Possession of a Unit

Decided by the First District of the Illinois Appellate Court on April 20, 2016, State Place Condominium Association v. Magpayo confirms that in order for an owner to regain possession of their Unit which has been lost to the Association

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Norfolk (VA) woman finally free of Chinese drywall filled home, seven years later

But when she walked out the front door of her Norfolk home seven years ago, never to return, she didn’t expect to walk into a seven-year legal fight with her neighbors.  The Harbor Walk Condo Association sought a growing pile

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(WI) Supreme Court Downs Condo Policy on Unpaid Assessments after Foreclosure

The Wisconsin Supreme Court, by a 5-2 majority, recently ruled that a condominium policy violated Wisconsin law by restricting a new condo owner’s access to condo amenities, like a golf course, if the prior condo owner’s assessments remained unpaid after

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Moon Lake Condominium Association v. RBS Citizens Bank

As the real estate market contracted over the past decade, surplus proceeds, resulting from an overbid at foreclosure sale, occurred infrequently. However, as the property market rebounds, the mortgage servicing industry is likely to see a rise in competitive bidding

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Law Unsettled on Liability for Post-Chapter 13 Association Assessments

If a condominium unit owner files for bankruptcy protection under Chapter 13 of the Bankruptcy Code and continues to own the unit, should the owner be responsible for future assessments by the condominium association? Most people would say, “Yes.”  

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