The title of Christina Aguilera’s pop cd can take on a special meaning for condo and HOA directors who are unaware of what can happen when a delinquent member declares bankruptcy. In two recent decisions, the U.S. Bankruptcy Court, Middle District of Florida, reiterated its position that a lien against an owner’s principal residence for… Continue Reading
Obviously over the past few years association leaders have had to devote a substantial amount of time, energy, effort and money to collecting delinquent assessments. However, where there is need there is opportunity. New businesses sprung up all over the U.S. to take advantage of this need. Collection agencies, funding companies and others promise condo & HOA board members… Continue Reading
A new case decided by the United Stated Bankruptcy Court requires unit mortgage lenders to contribute to condo association expenses.
Most community association leaders are familiar with the fact that they have to hold off on collection activities (such as sending further demand letters, filing a lien or prosecuting the association’s foreclosure case) when an owner files for bankruptcy protection. One important protection offered by the bankruptcy law gives the debtor “time to catch his/her breath”… Continue Reading
Court Rules in Favor of Condominium Association After Lender Fails to Move Foreclosure Proceedings Along or Comply With Court Orders. On Feb. 8, 2007, the Bank of New York filed a mortgage foreclosure lawsuit against a unit owner, naming the Moorings at Edgewater Condominium Association, Inc. as an additional defendant in the case. The defaulting unit owner… Continue Reading
Bankruptcy Court Finds "the Unit Owners are Not a Bottomless Well, From which Water May be Drawn Eternally With No Consequences" and Grants Maison Grande’s Motion to Reject Unexpired Lease. As I mentioned in July in Bankruptcy An Option for Finally Distressed Condos & HOAs, the 99 year lease for certain recreational and parking facilities placed the most stress on Maison Grande Condominium Association’s finances. Owners… Continue Reading
The Maison Grande and other bankruptcy filings by community associations have spurred interest in reorganization of debt. Is bankruptcy an option for your cash strapped community? What issues do you need to consider? Bankruptcy Attorney Aleida Martinez Molina answers the following questions for community associations struggling with bills and bad debt. CAN CONDOMINIUM OR HOMEOWNERS… Continue Reading
Many readers have posted questions regarding the ability to collect rent from tenants. It is important to remember that in all of the cases reported previously on this blog, the Court only appointed a blanket receiver to collect rent after the Association filed an action to foreclose its Claim of Lien. Thus, the Association must pursue the collection procedures set forth in the… Continue Reading
At Least Five Community Associations in Florida have filed for Bankruptcy Protection and Relief.
Reorganization through Bankruptcy Allows Communities to Restructure Obligations and Reduce Debt.