Hi All,
Becker and Poliakoff have recently conducted an Online survey of Condominium Owners.
Below is an extract from this survey, and it is not good news. Following the extract are two references to full reports.
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“The survey elicited responses from 1,589 property owners on a range of questions related to the mortgage foreclosure crisis in their communities. Three quarters of survey respondents were in a position as elected members of their community’s Board of Directors to have in-depth information and insight into the financial pressures caused by foreclosures.
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In the final report titled “State of Distress: The Mortgage Foreclosure Crisis within Florida’s Condominium and Homeowner Association Population,” two-thirds (65.3%) of respondents living in communities hit by mortgage foreclosures said lender foreclosures are “causing a revenue shortfall that is placing a burden on the association’s finances.” As a result, 37.9% said the foreclosure-related revenue crunch for Florida condos and HOAs has resulted in “postponements of major capital investments in upkeep or repair” of buildings and other property.
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And, when asked if the Florida Legislature, which is set to reconvene in regular session on March 3rd in Tallahassee, “should increase the liability of first-mortgage holders for unpaid assessments,” a resounding 90.3% responded “Yes,” that the Legislature should act “in order to decrease the financial burden of unpaid assessments on community associations.”
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REF: http://www.callbp.com/publication_pdfs/State_of_Distress__Final_Report_20090224134555.pdf
http://www.callbp.com/pubs_public.php
Dave Israel
Becker and Poliakoff have recently conducted an Online survey of Condominium Owners.
Below is an extract from this survey, and it is not good news. Following the extract are two references to full reports.
--------
“The survey elicited responses from 1,589 property owners on a range of questions related to the mortgage foreclosure crisis in their communities. Three quarters of survey respondents were in a position as elected members of their community’s Board of Directors to have in-depth information and insight into the financial pressures caused by foreclosures.
-
In the final report titled “State of Distress: The Mortgage Foreclosure Crisis within Florida’s Condominium and Homeowner Association Population,” two-thirds (65.3%) of respondents living in communities hit by mortgage foreclosures said lender foreclosures are “causing a revenue shortfall that is placing a burden on the association’s finances.” As a result, 37.9% said the foreclosure-related revenue crunch for Florida condos and HOAs has resulted in “postponements of major capital investments in upkeep or repair” of buildings and other property.
-
And, when asked if the Florida Legislature, which is set to reconvene in regular session on March 3rd in Tallahassee, “should increase the liability of first-mortgage holders for unpaid assessments,” a resounding 90.3% responded “Yes,” that the Legislature should act “in order to decrease the financial burden of unpaid assessments on community associations.”
-------
REF: http://www.callbp.com/publication_pdfs/State_of_Distress__Final_Report_20090224134555.pdf
http://www.callbp.com/pubs_public.php
Dave Israel
7 comments:
HI Dave, All,
Two items--
1. I'm arranging to have Becker and Poliakoff attorneys present in the Theater the seminar that they presented at the Kravis Center last weekend. This seminar is regarding the collections and foreclosure process as it happens now and a reminder of the changes in the law pertaining to Condos implemented during the last session and what is to be expected in the next session.
Also probably some information regarding what you and I should be doing NOW!
Stay tuned, hopefully this will happen in mid March. More on Channel 63 and probably an announcement at the Delegate Assembly.
2. It would be my opinion that the lack of equity in property in the Village has caused the lending institutions to cease most foreclosure attempts.
In the "old" days the institution wasnte to regain their money and would foreclose to regain it.
Now however, there is in most cases no equity therefor no desire to foreclose and now the individual association(s) are left holding the bag.
That is my opinion, what is yours?
Are you under the illusion that the lender is allowing the mortagee the right to squat. I believe squatters rights went out at the end of westward migration. However the banks renting the property maybe a possibility .
In any case if a property is vacant I would certainly suggest that an association board member go in to the vacant unit. There is always the possiblity of rodents entering the unit, (it has happened in Century Village)something which we want to prevent.
Any unit which has been left vacant for any period of time without proper protection is a liability leaving adjacent units vulnerable to any number of problems.
To Anonymous 9:33
Most of the units that I'm aware of at this time that are very delinquent are vacant. You are correct, these should be inspected by the Board on a regular basis.
RE: rodents.
Again you are very correct. I'm aware of a few Associations in my area that have investigated the potential for rodent infection. More than 50% have found the critters in occoupancy.
They do cause damage, do not pay rent and can are hard to live with.
I'd suggest an inspection by a reliable firm.
When the owners of multiple units, so called "investors" became a convenient commodity, greed magnified a situation and now people that did not speak up are included in having to pay the price.
Because you did not read your documents
Because you did not follow FS 718
Because you listened to UCO
Because you didn't care when your neighbors rights were violated
Because you participated in promoting illegalities
There is a price to be paid.
Collective guilt is expensive.
The entire village is under duress with many associations being poorly managed. We should not allow business to be run as usual. Something has to be done!
Perhaps the community has to set up a bi-partisan advisory board to collectively come up with a collection of published recommendations to be used as guide lines for all association leaders.
Frankly consolidation of the communities and thus their various responsibilities would not only offer proper procedures but also significant cost savings.
Such areas as grounds maintenance , plumbing, electrical work can be managed with emphasis on quality and price.
It makes alot of sense if a half dozen associations were to approach a number of contractors for pricing on similar work to be done. Sure there are times when certain jobs are so dissimilar that an association has to go it alone. However the truth be it most times the former can be achieved.
Another suggestion is that there should be a central location where a unit owner or an association can ,(perhaps even be compelled to go to)give their opinion as to whether the work was done in a professional manor at a reasonable price.
From what I have seen most of the work done in this community is being provided by many contractors who like the piranha feed on the disorganization.
Your association should follow their documents and the State law. No need to re-invent the wheel.
This has nothing to do with my association. I'm not blind nor death. There are numerous associations that are in trouble and have been for many years.
If I remember a Judge eventually appoints an administrator at a fee to an association which already is in financial trouble.
The wheel has to be reinvented. There are foreclosures aplenty to prove my point. Believe it on not there are owners whose finances are not infinite.
This problem is not going to disappear. The countries financial crisis will last for years and this community will continue to deteriorate.
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