Banker's Push for Fast-Track Foreclosures: Capitol Conversation Update
First, a quick note of introduction. As stated above, my name is Travis Moore and for the last number of years I have had the privilege of advocating for the interests of CALL members before Florida's policy makers. This includes the Governor's Office and Executive Branch Agencies such as the Department of Business and Regulation which is charged with condominium oversight and the state Legislature. While decisions are being made in Tallahassee and around the state, it is vitally important the voice of each CALL member is heard by those holding sway over the deliberations. I am pleased to be a part of your team by pointing your megaphone in the most effective direction and being your eyes and ears as the debate affecting our community takes place.
Probably THE hot button issue facing community associations in Florida is mortgage foreclosures and the statutory limit of lender liability for assessments. The association is left maintaining the asset - the burden on the backs of the units not in foreclosure, but many sliding that way. This added burden is just buttering the slope.
Up until recently, the lending lobby has offered no workable solutions. Now, they are circulating draft legislation creating a non-judicial foreclosure process. To date, no bill has been filed but we suspect it will and CALL will quickly analyze it and get it circulated for your input. Already, we are reviewing the draft so be looking for a CALL Alert soon.
As in any proposal to address this true crisis for associations, there are certain criteria which we will insist on. Obviously it must address the associations' ability to have owners and lenders meet their financial obligations to the association. What is rightfully owed to the association for maintaining the real estate must be paid. It must be paid as quickly as possible. One of the main issues currently being faced by associations is the length of time it is taking for the property to be foreclosed, while the hard cap of 6 months (COA) and 12 months (HOA) is keeping the lenders' liability unreasonably low.
It is imperative that any foreclosure process, including a non-judicial one, not put the entire process and timetable under the control of the lender. The lenders have the most to gain by delay...a cap and avoidance of paying full assessments upon taking title...while leaving associations even further at their "mercy."
If you are in front of the legislature, suggest that they form the position of Ombudsman for a HOA similar to that of the position for a Condominium Association...
HOA members are really in need of much help from runaway boards who get re elected by the "clicks" and do as they please ignoring the members who can do nothing except sue, which doesn't have a "chilling effect" it has an icing...
Ours, for example, in this terrible economic time just took out a 8.3 million dollar loan for renovations which should require a membership vote, increasing the assessments by 35%, avoiding the vote by calling the renovations loan repayment obligation a normal monthy maintenance expense and in lieu of mortgaging the common property, suggested by the documents, they used the ongoing assessment obligation deemed by the documents to be "exclusive" to the board, as collateral for the loan, thus exposing our homes rather than the common property to foreclosure...
George W Conrad
It appears that Citibank is circumventing the delay the courts are attempting to invoke on foreclosures. Citi announced today that they will forgo foreclosure for six months if the the delinquent owner gives them their deed immediately. This means they get six months, but must then vacate with no foreclosure proceedings at all. Pretty slick it even eliminates short sales.
Welcome Travis we meet casually about eight months ago at an affair in Talle :)
As a member of a condominium associaton, who stands to lose everything if something isn't done, I think this legislation is necessary. We have multiple units in foreclosure that have there for more than 2 years. The association is having difficulties balancing the amount of monthly assessments and the amount to borrow from reserves without pushing other condo owners into foreclosure. If we deplete our reserves, all unit owners [and banks] stand to lose their investment if we experience even a minor tropical storm season. I fully support this legislation. Who cares if bankers aren't someone Crist wants to support at this time b/c of his "political agenda". He needs to support this legislation in order to keep all condo owners off the street b/c all condos are at their wits end.