Lenders Vs Associations Video Part 2
Video Transcript
What’s going on with the association, because another big myth and another big statement that I hear all the time is “well the association can’t take my house away” Yeah they can, if they you don’t pay, if your homeowner if your seller doesn’t pay the association absolutely they can take the house away, they can file a lien foreclosure, or they can file just on the debt alone and not enforce the lien, but just sue for the money damages, so associations are something that we need to watch out for.
Another change, another recent change in the law. How many of you know the new, as I call it the speedy foreclosure bill that was just signed into law, took effect a couple of months ago? There was another provision that also took effect when that law was passed in regards to homeowner associations. What happened was a homeowners association took title through foreclosure, they then sold the property the homeowner association sold the property, the new buyer said association, you took title in foreclosure, so everything that you were owed by the previous owner was eliminated when you took title association, therefore I’m only paying from the day I take title forward. The legislature has changed that now 720 has a provision in it, that says, the previous owner shall not include an association that acquires title to a delinquent property through foreclosure or deed in lieu. That doesn’t apply to condos yet, but I have a feeling in the next legislative session it will it only applies to associations. So what does that mean as a practical matter? If you all are representing buyers that are buying properties from the association, they may be liable for a big association bill it is very, very important now to get that estopple letter, because if the association forecloses for a $20,000 missed assessment, or compilation of assessments you can no longer go in and say well association you now own the property. We’re buying it from you, so that $20,000 debt is gone, that is no longer true pursuant to statute.
