Saturday, June 23, 2012

"Aggressive foreclosures backfire on Florida homeowners associations"

Here is a bit of he much longer article, see entire article at: http://www.ccfj.net/HOAFLFORECLbackf.html

Race to Foreclose
"Like banks, homeowners associations have the right to foreclose if people don't pay. But in what Tankel has called a "race to the courthouse steps,'' the associations have an advantage.

Because most owners owe less than $15,000, associations can file their cases in county court instead of circuit court with its heavier caseloads and higher dollar amounts. That way an association can get a final judgment of foreclosure in as few as 270 days, compared to the 800 days it takes for the average bank foreclosure in Florida.

After the foreclosure, the property usually goes to auction, where buyers pay a few thousand dollars to cover delinquent fees. If no one bids, the association can negotiate its own sale. Either way, the new owner can then rent out the home while the bank foreclosure drags on."

At NCC we 'temporarily own' three units (401, 702, 705) they are rented out and 3 more are coming up for auction June 5th:  506 Glass, 615 Gayatin, 701 Jarrett, we may also end up with these 3 condos to rent out. In order to 'break even' it seems that we would have to hold onto and rent out such units for an average of 20 months each. 

I believe we would have been better off letting the banks and mortgage companies do the heavy lifting and collecting from them when they foreclosed.  We can NOT sell these units and the holders of the first mortgages will eventually go to court and take them back from us.  Further info at:  http://tinyurl.com/6t7azjt

The only one to defnitely benefit from all this upheavel and drama is the association lawyer, Hess/Applebaum, who will come out of this with a profit of at least $24,000 and that is theirs even if we don't hold those units for the 20 months.

If you want to follow the auction you can do so on the Bay County Clerk's site at: https://www.bay.realforeclose.com/index.cfm