According
to USA Today; “One in five U.S.
Homeowners are subject to the will of the homeowners'
association, whose boards oversee 24.4 million homes. More than
80% of newly constructed homes in the U.S. are in association
communities. And of the nation's 300,000 homeowners'
associations, more than 50% now face "serious financial
problems.”
Associations
are foreclosing on delinquent units in record numbers. But is
foreclosing the best option for the Association? Most Florida
Boards would answer with a resounding YES!
By
foreclosing on a delinquent unit the Association may lease the
unit to a qualified tenant using the income to offset
Association fees. But there are a few things Boards should keep
in mind when moving forward with such actions.
1. Engage a reputable attorney who can provide you with
sound legal advice and who is proactive in monitoring the banks
foreclosure activity on the target unit.
2. The Board or staff member should walk a unit prior to
taking foreclosure action to determine if the unit is in
“rentable condition” or what will the cost be to bring it to
“rentable condition” and thenweigh those costs against the anticipated rental income.
3. Banks are notorious for sitting on units
procrastinating on finalizing foreclosures so they don’t have to pay monthly assessments. The attorney should be
able to estimate the length of time the Associationwill hold the unit by closely monitoring the stage of the
Bank foreclosure process.
4. Most importantly the Board and Management company MUST
ensure their financial records areaccurate and that the target unit is in fact delinquent
and all the proper notices have been sent.
Darlys
Walker, Founder and CEO of Condominium Concepts
Management, Inc. (CCM), is recognized for her straight
talk, subject matter expertise, and valued insights
regarding real
estate
management, leasing, and HOAs. Her company serves a diverse
portfolio of properties, from 16-units up to 600 as well as
large mixed-use developments.
From its beginnings in 2000, CCM has become a well-respected
asset manager and now works with over 100 associations with
16,000 units served by over 300 employees. Darlys and her team
deliver resources and responsiveness through six regional
offices - in
Orlando, Miami, Jacksonville, Charleston,
Nashville
and Atlanta.
Darlys Walker is best known for her passion and precision,
understanding that the only difference that matters in today's
demanding marketplace is service delivery ... doing what is
promised and what is right. She knows that every community
serves two masters ... the property owner/developer and the
resident/homeowner. "If we are not equally responsive to
both, we are not doing our job," she states.
Her clients say it best: "Darlys really knows her
stuff" ... "at the top of her profession and it shows
in the caliber of her clients" ... "delivers quality
resources that match up well with needs and expectations that
are really rigorous."
She is a licensed Real Estate Broker in four states, holds an
Associate's Degree in Marketing and has earned the Accredited
Real Estate Manager designation from the Georgia Institute of
Real Estate Management. Also she is one of few certified as a
Lead-Based Paint Abatement & Removal Trainer in Georgia.
