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MORE FORECLOSURES TO COME?
By
Jan Bergemann
Published July 17, 2020
A lot is written
about another wave of foreclosures caused by COVID-19 is coming
soon. Yes, there may be foreclosures on the horizon, but I don’t
think it’s time to panic. Some associations already consider
writing a budget for next year, including line items for unpaid
maintenance fees.
I think our
associations are much better equipped to deal with another wave
of foreclosures unlike in 2007/2008 when a crashing economy
caused associations to levy special assessments to balance the
budget and in order to pay necessary bills.
The Florida statutes
are now containing provisions that explain in detail how to deal
with such a possible financial crisis.
Eric pointed out in
his blog posted Monday that our esteemed legislators protected
banks and mortgage lenders against unpaid association dues.
Associations just have to make sure to be ahead of banks when it
comes to foreclosures for unpaid dues. Banks normally take a
while before starting foreclosure procedures. Make sure the
association beats them to the punch.
During the last
foreclosure crisis we saw owners paying their maintenance dues,
but not their mortgage, knowing that the bank foreclosure lasts
a lot longer than the association foreclosure.
And if there are
renters in the unit/home where the owner doesn’t pay dues, make
sure that your association goes after the renter a.s.a.p. That
always forces the issue.
In summary: Make
sure that the association receives the maintenance fees needed
to pay the bills, but make sure that you allow payment plans
from owners who are willing to find an amicable solution.
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Jan Bergemann is president of Cyber Citizens For Justice,
Florida
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
community
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associations. He moved to
Florida
in 1995 - hoping to retire. He moved into a HOA, where the
developer cheated the homeowners and used the association dues
for his own purposes. End of retirement!
CCFJ was born in the year 2000, when some owners met in
Tallahassee
- finding out that power is only in numbers. Bergemann was a
member of Governor Jeb Bush's HOA Task force in 2003/2004.
The organization has two websites to inform interested
Florida
homeowners and condo owners:
News Website: http://www.ccfj.net/.
Educational Website: http://www.ccfjfoundation.net/.
We think that only owners can really represent owners, since all
service providers surely have a different interest! We are
trying to create owner-friendly laws, but the best laws are
useless without enforcement. And enforcement is totally lacking
in
Florida
!
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