Homeowners associations are moving to foreclose on properties in an effort to force banks to take possession of condos and pay homeowner’s fees, the Miami Herald reported.
Homeowners associations are often much more aggressive than banks in seeking eviction or foreclosure actions against delinquent homeowners. Miami homeowners facing foreclosure can often remain in their homes throughout the foreclosure process as long as they don’t run afoul of their homeowner’s association. A Miami foreclosure attorney should be consulted in cases where a homeowners association is involved in the foreclosure process.
Homeowners associations in South Florida are resorting to “reverse foreclosures” in an attempt to collect association and maintenance fees. Associations have come under increasing financial strain during the real estate bust as multiple foreclosures leave them with fewer fees and more empty units and properties to maintain.
This latest move by homeowners associations is a result of an increasing number of banks that are delaying the process of taking back a property. By delaying the sale, banks are hoping for a market rebound. In the meantime, a property sits in limbo and the homeowners association doesn’t get paid.
Under a reverse foreclosure, the association files its own foreclosure action. It then renounces its claim to the property (an association can’t sell anyway because of the bank’s lien) and asks a judge to give title to the bank.
Staying current on your homeowners fees is important if you and your family want to remain in your home throughout the foreclosure process, which can take several years.
If you are facing a foreclosure in the Miami area or are fighting your homeowners association over fees or special assessments, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.