Here is a novel concept worth exploring with your Association Attorney.
Dave Israel
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THIS IS NOT TO BE CONSTRUED AS LEGAL ADVICE
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IT IS MERELY A NEWS ARTICLE
Monday, January 25, 2010
Miami judge grants reverse foreclosure
South Florida Business Journal - by Paul Brinkmann
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Attorneys for the Keys Gate Homeowners Association in Homestead have won a legal victory in a case that could set a precedent for banks that drag their feet in taking title to homes facing foreclosure.
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The Association Law Group of Miami won the case on behalf of the Keys Gate HOA using what it calls a reverse foreclosure, designed to speed up the process of awarding a property to a bank, thus making the bank liable for fees and maintenance, even if the property is vacant.
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Based on the reverse foreclosure procedure, Miami Dade Circuit Judge Jerald Bagley awarded title of a home in the Keys Gate development to HSBC Bank on Jan. 12.
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The home had fallen into foreclosure in 2007. Since then, the home remained in limbo, owned and maintained by the association, but with an HSBC foreclosure action pending for more than two-and-a-half years.
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"ALG's reverse foreclosure procedure will finally help associations force banks to take title to financially upside down units much faster than ever before,” ALG attorney Ben Solomon said in a news release.
As part of the reverse foreclosure, Keys Gate waived its rights to the property and, as the current unit owner, waived its right to public sale. The motion was granted and the clerk of court issued a certificate of title the same day, transferring ownership of the property to the bank. The certificate of title then triggered HSBC Bank's requirement to pay its share of past due assessments, legal fees, court costs and all assessments going forward.
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“This new legal strategy saved Keys Gate a minimum of eight months or more of bad debt write-offs because the association did not have to wait for the bank to get a foreclosure judgment, schedule a foreclosure sale and sell the property at public auction,” the law firm said in the news release.
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The practice of banks holding up foreclosure proceedings is not uncommon and has a huge financial impact on associations that must write off month after month of bad debt until the home is taken off its hands.
See also:
See also the 3rd District Court reversal decision referenced by Randall in the comment stream at:
http://www.3dca.flcourts.org/Opinions/3D09-1389.pdf
THANKS DAVE, That is GREAT info.
ReplyDeleteEvery Association in CV that is
ReplyDeleteaffected by owners just walking
away and leave all their problems
with us unit owners owe you a huge
THANK YOU for always looking out
to help everyone living at CV.
Without you David always looking
out for us all I can say is that
on ELECTION DAY FOR PRESIDENT if
you don't win by a landslide I
definitely want to know the reason
why. NOBODY BUT NOBODY LOOKS OUT
TO HELP THE PEOPLE OF CV THE WAY
YOU DO.
HERE'S LOOKING AT OUR NEXT PRESIDENT.
Lilly Roberts
Go Dave!
ReplyDeleteGreat find Dave , this is a God Send for a community like CV.
ReplyDelete(Excerpt from B & P Law Firm)
ReplyDeleteOne court ordered a foreclosing lender to “diligently proceed
with the (instant) pending foreclosure action within
30 days or pay monthly maintenance fees.” Regrettably, Florida's Third District Court of Appeal, relying upon another decision, reversed the
trial court’s order, noting that courts of equity have no right or power under the law of Florida to issue an order, which it considers to be in the best interest of “social justice” at the particular moment, without regard to established law. Sounds like a wake up call for the Florida Legislature to address the crisis,
which threatens to undermine the financial viability of the State’s shared ownership communities that
house close to 5 million Floridians
Randy:
ReplyDeleteWhen you post that Florida needs
a wake up call let me remind you
and all of CV that there is a Bill
in legislature submitted by State
Sen. Evelyn Lynn to make banks and
mortgage companies liable for
Association fees owed by units from
the day of filing for foreclosure.
The bill provides for RETROACTIVE
APPLICATION. In the February
issue of The UCO Reporter on
page 12 read my article pertaining
to this bill. CENTURY VILLAGE
CONDO OWNERS NEED TO SUPPORT
SB 780. I have worked my butt
off trying to get State Senator
Jeff Atwater to look at this
bill and support but he won't
give me the right time of the day.
He has avoided me to no end.
He is looking to run for a higher
office. He won't get my vote.
Nutmegger,
ReplyDeleteLilly,
I need no reminder regarding this very important issue. I sincerely hope the bank lobby, one of the most powerful in the country, recognizes the Senator's efforts and the desperate need for the elimination of unnecessary delays in foreclosure proceedings throughout Florida's common ownership communities... I sincerely have my doubts. You do, although, get an "A" for your efforts.
The Bill reads as follows:
ReplyDeleteFlorida Senate - 2010 SB 780
By Senator Lynn
7-00598-10 2010780__
Page 1 of 1
CODING: Words stricken are deletions; words underlined are additions.
1 A bill to be entitled
2 An act relating to the payment of fees in foreclosure
3 proceedings; requiring a financial institution that
4 institutes a foreclosure proceeding against
5 residential property to pay all fees associated with
6 or owed by the property which accrue from the date the
7 foreclosure action is initiated until the foreclosure
8 is finalized; providing for retroactive application;
9 providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Any financial institution that institutes a
14 foreclosure proceeding against a residential property or has a
15 foreclosure proceeding pending against residential property
16 shall timely pay all fees associated with or owed by that
17 property, including, but not limited to, homeowners’ association
18 fees, maintenance fees, and property taxes. The financial
19 institution shall pay such fees accruing from the date on which
20 the foreclosure action is initiated through the date on which
21 the foreclosure is finalized. This section applies:
22 (1) Retroactively to all foreclosure proceedings pending as
23 of the effective date of this act.
24 (2) To all foreclosure proceedings initiated on or after
25 the effective date of this act.
26 Section 2. This act shall take effect upon becoming a law.
S780 GENERAL BILL by Lynn Foreclosure Proceedings/Payment of Fees [CPSC]; Requires a financial institution that institutes a foreclosure proceeding against residential property to pay all fees associated with or owed by the property which accrue from the date the foreclosure action is initiated until the foreclosure is finalized. Provides for retroactive application.
ReplyDeleteEFFECTIVE DATE: Upon becoming law. 11/18/09 SENATE Filed 12/17/09
SENATE Referred to Banking and Insurance; Community Affairs; General Government Appropriations