Condo groups facing unpaid dues push for foreclosures

Check out this article from the Washington Post talking about what happens when a condo owner falls behind on the association dues during the foreclosure process.  For more information about Destin Condos For Sale or Destin Area Real Estate in general give us a call at 850-654-3325 – we’re here to help.

Condo groups facing unpaid dues push for foreclosures

MIAMI – Nov. 24, 2010 – In Florida, a lawyer representing condo associations is taking a new approach with mortgage lenders in order to prevent the associations from being saddled with unpaid dues while lenders put off foreclosure because they do not want to be responsible for those costs. The attorney is giving banks two choices: foreclose now or have the mortgage terminated, a process also known as reverse foreclosure..

When an owner falls behind on condo fees, associations can file a lien against the unit, demand the balance of the yearly assessment or foreclose; but the latter option generally means that they own the unit and likely will be unable to sell it because the mortgage balance is greater than the unit’s value. However, the mortgage lender often doesn’t want to foreclose in these cases because it will then become responsible for the condo fees, real estate taxes and insurance.

Ben Solomon, an attorney with the Association Law Group, recently filed suit against Citibank after the association foreclosed on an owner who was delinquent on her condo fees. The lawsuit cited a “restraint on alienation,” meaning that the outstanding first mortgage and the fact that the mortgage balance was greater than the fair market value of the unit impeded the unit’s sale.

Citigroup ultimately released the mortgage so the association could sell the unit for whatever price it could fetch on the open market, with the new owner taking over the condo fees and real estate taxes.

Source: Washington Post (11/20/10) P. E1; Kass, Benny L

Thinking of Selling Your Destin Condo or Want to Know the Value of your Property?

I know that it’s a tough market for sellers right now and I certainly would not advise you sell unless you had to or if you could use your money better somewhere else.  If you are curious about the value of your property simply call or text me at 850-217-7618 – or send an email to JohnMoran@AtTheBeachTeam.com  and I will be happy to do an analysis on where the value is for your property right now and what it will take to get it sold quickly for the best price possible.  Then if it makes sense to sell we can move forward or if it makes more sense to wait we will simply monitor the market until the time is right.   Either way my team and I sell more condos here at the beach than almost anyone and we would be happy to help you when the time is right.

Your Real Estate Resource At The Beach

We want to be your real estate resource at the beach so if there is anything we can do for you just call or text me at 850-217-7618 – or send an email to JohnMoran@AtTheBeachTeam.com and we will be happy to assist in any way we can.

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About JohnMoran

John Moran is the Team Leader of Keller Williams Realty’s award winning At The Beach Team and a Resort Property Listing Specialist servicing the Destin / South Walton County communities. Call or text John today at 850-217-7618 for more information about real estate at the Beach or email JohnMoran@AtTheBeachTeam.com

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