In June, we notified readers that beginning July 1, 2021, the Florida Statutes would begin requiring a Notice of Late Assessment (“NLA”) as the new “first step” in the community association assessment collection process.
Florida Mortgage Foreclosure and Eviction Moratorium Expires in Favor of Federal Moratorium
11 Mar 2021 inClayton & McCulloh has closely monitored Florida Governor Ron DeSantis’ mortgage foreclosure and eviction moratorium via Executive Orders beginning with No. 20-94. See, e.g., What the Heck is Going On with Florida Foreclosures?! and Limited Extension of Mortgage Foreclosure and Eviction Relief. The most recent extension – pursuant to EO 20-211 - expired at 12:01 a.m. on October 1, 2020, so for the first time since April 2, 2020, no Florida-imposed moratorium precludes a lender from proceeding with a foreclosure action, or a landlord from proceeding with an eviction action, for non-payment. However, that does not necessarily mean a sudden landlord/lender free-for-all has arrived.
Foreclosure Sales and What They Mean for Your Community
11 Sep 2019 inFor many community associations, collection of past-due assessments plays a major role in the annual legal budget (although in successful collections, the attorney’s fees and costs incurred are collected from the delinquent owners). These past-due accounts create a myriad of challenges, such as lenders’ foreclosure actions or owners’ bankruptcies, in addition to the association’s collection efforts themselves, which are often addressed simultaneously with these challenging issues.
How to Handle Lenders' Foreclosure Delays
15 May 2019 inA lender's foreclosure action can create challenges for community associations seeking to collect past-due charges. Because a first mortgage lender can generally eliminate the association's lien and/or ownership, as well as certain pre-title charges, some associations cease collection when a lender files a foreclosure action. Such measures impress upon owners that there are no consequences to overdue charges, and increase the financial burden on paying owners. It also eliminates the opportunity to be paid.
What An Owner’s Bankruptcy Means For Your Community
22 Jun 2018 inOwners’ bankruptcy filings can create many challenges for community associations seeking to collect or otherwise resolve past-due balances owed by the debtor. For example, even where the owner and association agree to settle the debt, if the owner has an active bankruptcy case, the settlement must be approved by the bankruptcy judge. In considering the settlement, the judge’s primary concern is generally the proposed settlement’s effect upon the bankruptcy estate (i.e., the assets available to all creditors), rather than resolving the debt owed to the association.
Unpaid County Property Taxes and What they Mean for Your Community
28 Feb 2018 inOwners who fail to pay their association or mortgage lender often also fail to pay county property taxes, which can result in a tax deed sale and related elimination of past-due assessments. Such taxes accrue annually on November 1st, and are late if not paid by April 1st of the following year. On June 1st, the tax collector can sell a “tax certificate” for the delinquent taxes and interest thereon, at a public auction. The purchaser of a tax certificate (e.g., the county where the property is located, if there are no bidders) may then charge the cost of purchasing the certificate plus interest to “redeem” (resolve and eliminate) the certificate by paying the taxes and interest due.
Appeals To A Scheduled Sale
15 Jun 2017 inOur Firm has noticed a substantial increase in the number of appeals being filed against lien foreclosure judgments. Part of this is attributable to the overall decrease of foreclosure matters, and the increase in the number of individuals that cannot reasonably file for bankruptcy to stay a sale (due to the party owning multiple investments, having adequate assets, etc.). A Defendant/Appellant filing an appeal to a lien foreclosure judgment can be a frustrating and infuriating occurrence for an Association.
4th DCA Clarifies when an Association can Intervene in a Mortgage Foreclosure Action
17 Aug 2016 inThe 4th DCA has clarified in Jallali v Knightsbridge, 4D15-2036 (2015) when it is necessary for an Association to intervene in a Mortgage Foreclosure action. The 4th DCA has opined in the Jallali v. Knightsbridge case that only when an Association has taken Title in a Lien Foreclosure action and after a supplemental Lis Pendens has been filed by the Bank to re-foreclose, must the Association intervene in the Mortgage Foreclosure action as that Court has jurisdiction. This opinion distinguished their prior decision in U.S. Bank National Ass’n v. Quadomain Condominium Ass’n, 103 3d 977 (Fla. 4th DCA 2012).
Squatters, Don’t Get Any Ideas
24 Sep 2015 inWhile Clayton & McCulloh encourages ingenuity and invention on the part of their clients (with the advice of counsel, of course), the following scenario is an example of what the great Charlie Murphy would probably call “line stepping.”
A military family in Tampa returned to their home last month to find presumptive squatters living in their home. The solution was simple, they thought: call the Sheriff, report the problem, and get the squatters out. However, upon reporting the squatters, the family found out that a) the squatters had a “lease” (unsigned, as it turned out), and b) that the management company for their homeowner’s association had been collecting $1,000.00 a month in rent from the squatters. The Association informed a local reporter that the family was behind $6,000.00 on their dues and that Florida law allowed the Association to collect rent.
Who Pays When An Association Acquires A Vacant Lot?
18 Aug 2015 inAn Association forecloses on a vacant lot in the neighborhood and takes title after foreclosure. The scenario is not uncommon; especially in neighborhoods that are developing, expansive, affluent, or newly built. But if the Association holds record title to a vacant lot, must the Association still pay assessment dues on said vacant lot? The answer most likely is yes.