The Real Estate Mango

Aventura Condo Problems…Non Payment of Maintenance Fees…Impact on the Condo…Possible Solution

Condos and homeowners associations are facing a crisis of tremendous proportions when owners stop paying maintenance.  This situation is occuring with alarming frequency.  

As soon as a homeowner stops their mortgage payments, the banks start foreclosure proceedings and then just stop.  They hesitate to foreclose in this market because they don’t want a declining asset on their books.  So they wait.

In the meantime, the homeowners stops paying maintenance fees and the associations cannot pay their bills.  WHAT TO DO!!!

The idea today is mentioned in the Miami Herald in great detail but the jist of it is this…..under the existing law, condo and homeowner associations can foreclose for unpaid maintenance.  If they proceed with this….and take title of the unit, the bank has no choice but to take it back and pay the maintenance (which cannot exceed 12 months back due). 

The reason this works for the associations is because the banks’  lien prevents the association from making a sale.  If they go to court and ask the judge to give the title back to the bank, the bank has no choice but to accept and pay the maintenance owed up to 12 months of deliquent payments.

THIS IS FOOD FOR THOUGHT!!!!

I spoke to a homeowner association member today, who said their lawyers are looking into this scenario.  What will the costs be to the rest of the homeowners?  Is this financially viable?  I will keep you posted.

If you are interested in more information….please call me.   LEE HEUER 305 607 1943   anytime….

This entry was posted on Monday, March 8th, 2010 at 6:27 am and is filed under Breaking News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Sharon said at March 8th, 2010 at 9:47 am

   Read this yesterday with great interest! Definitely something for the HOA’s to look into. Why should the rest of the home owners be put into jeopardy while these people continue to live in their homes and not pay fees? Something needs to be done.

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