Critically important Florida Foreclosure Ruling Finally Gives Condos and HOAs Weapon Against Banks

An incredibly important judicial ruling this week out of the Fifth District in Florida.  If you’re in a Florida shared ownership community, you need to know about this one.

I’m not going to reinvent the wheel, since some of my colleagues have written about the issue quite thoroughly.  Take a look at Lisa Magill’s blog here:

For those who just want the short version, a bank had foreclosed on a home for which the association was named as a defendant (which is normal in all foreclosure cases).  The bank won a judgment, but kept delaying the actual foreclosure sale, which similarly kept the association from collecting any maintenance (in Florida, foreclosing banks are responsible for only a very small portion of maintenance, and then only when the sale is finalized).

The court ruled that the association had the right to request that the bank set a date for the sale, despite the bank’s desire to delay.  This is very, very important right now among SOCs all over the state.  Delays in foreclosure sales have been rampant, and they have been keeping communities from collecting maintenance legitimately due to them.

So if you live in an SOC with active bank foreclosures, make sure your board knows about this decision and contacts your attorney with instructions to set sale dates on all delayed foreclosure sales.  This may finally be the tool we need to start clearing the glut of non-paying homes out of our neighborhoods!

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