Condo Associations Facing Foreclosure Problems Is Seeking Court Intervention

In central Florida the condo associations are economizing on items like lights in tennis courts

. They are seeking the help of the law because too many condo owners are deserting their units that are fast falling in value; consequently it is difficult for the associations to collect due maintenance fees.

Bill Raphan of the states Division of Condominiums admitted that it has now become a major crisis. The desperate association wants courts to appoint receivers. This trend had made its debut in South Florida and is now likely to spread to Central Florida. It is a symbol of how grave the situation is said Donna Berger of Community Advocacy Network. The latter is a non-profit body representing nearly 1,500 condo and home owners associations. She said, The current economic downturn and foreclosure crisis have placed many associations on the brink of disaster.

Raphan explained that innumerable condos have been deserted. It means that often a complex having 100 units might have just five residents who can still afford to continue staying. He said, We get people who are calling and saying, 'Why should I be paying my maintenance fees when there are so many foreclosures? I'm not going to pay. What can they do to me?

Recently Seth R. Heller & Co was appointed by Circuit Judge Alan a. Dickey to collect the due fees from the Villas at Lakeside a condo in Oviedo. Of the 294 owners 60% are lagging behind with individual dues amounting to over $11,000 for those owning many units. The total amount of unpaid fees is a staggering $720,000. If the condo owners fail to clear dues early they will be charged for contempt of court and may be arrested.

Stuart Zoberg, a lawyer from Fort Lauderdale representing Villas board said, Without this order, the association was really facing financial collapse. And all along you have these landlords laughing, because they are collecting rents, and they still siphon off as much money as they can from their renters without paying association fees.

The challenge before the condos does not end here because according to Florida laws those who are lagging behind on bank owned condos have to clear dues for the last six months only. Raphan explained, They can be two years behind, and they only have to pay six months of maintenance fees, or 1percent of the mortgage value, and that doesn't come anywhere near what they owe.

If a revised legislation comes through then the owners will be asked to pay for the last 12 months due fees. Earlier in the year this measure failed to become law.



by: Karen

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