POLIAKOFF TO OBAMA - MAKE BANKS PAY THEIR SHARE

Hi all,

Following is a letter written by Gary Poliakoff to the President of the United States regarding Banks paying their obligation to the Associations when foreclosing on Units.Let's hope it finds receptive ears.

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Dave Israel

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Reply To:
Fort Lauderdale
Gary A. Poliakoff, J.D.
Direct dial: (954) 985-4150
GPoliakoff@becker-poliakoff.com

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February 26, 2009

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The Honorable Barack Obama
President of the United States
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
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Re: The 60 Million Forgotten Victims of the Sub-Prime Mortgage Crisis, Bank Failures, and Home Foreclosures
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Dear President Obama:

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Much has been said and written about the mortgage crisis and its impact on both banks and
borrowers. And while the “Homeowner Affordability and Stability Plan” will, hopefully, go a
long way towards stabilizing the housing market, there is one aspect of the problem which has
been largely ignored: namely, the failure of banks and defaulting homeowners to pay their share
of the common expenses necessary to maintain the Nation’s 300,000 condominium,
cooperatives and planned developments operated by community associations. As a direct result, innocent unit owners, those who are timely paying their share of the common expenses, are being forced to cover the bad debt for defaulting banks and unit owners. In some cases there just aren’t sufficient funds to pay for electricity, ground maintenance, insurance, security, waste management, and other essential services necessary to preserve the property values.
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To put this into proper perspective, according to the Community Association Institute
(www.caionline.org), the value of homes in all associations is estimated at $4 trillion. Estimated
annual operating revenue for U.S. community association operated homes, housing 60 million
Americans, is more than $41 billion. To a large degree, the assessments paid by the unit owners are going to maintain the collateral of the banks and defaulting unit owners, neither of whom are paying their share of the common expenses.
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There is a solution to this problem--banks receiving Federal bailout monies and unit owners
offered restructured mortgages at lower interest rates, as a condition of their receiving Federal
funds and lower interest rates should be obligated to bring their obligations to their Community
Associations current.
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I trust you will give this matter the important consideration it warrants. Feel free to call upon me
if I might be of any assistance in finding a solution to this crisis.
Very truly yours,
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Gary A. Poliakoff, J.D.
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cc: Elizabeth Warren, Chair, TARP Congressional Oversight Panel for Economic Stabilization
Neel T. Kashkari, Interim Assistant Secretary of the Treasury for Financial Stability

MORE ON FORECLOSURES FROM THE SUN SENTINEL

Hi all,

Here are two articles by Daniel Vasquez from the Sun Sentinel:

Do not miss the Video.

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http://www.sun-sentinel.com/business/custom/consumer/sfl-flbcondocolbox0305sbmar05,0,4991388.column

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http://www.sun-sentinel.com/business/custom/consumer/sfl-flbcondocol0305sbmar05,0,6668955.column

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Here is a possible helping hand to investigate:

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West Palm Beach expands foreclosure assistance center:

> Posted by Paul Owers on February 17, 2009 at 3:53 PM

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Banks temporarily are halting foreclosures, and now the city of West Palm Beach is expanding its foreclosure assistance center.
The office on Fern Street previously helped city residents only. Now homeowners across Palm Beach County can visit the center at no charge.

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“This expansion is great news for Palm Beach County’s homeowners,” Mayor Lois Frankel said. “Thanks to our new partners, we’re going to be able to serve many families that we would have had to turn away in the past.”

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For more information, call (561) 822-1583 or visit wpb.org.

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Dave Israel

FORCLOSURES AND FINANCIAL DISTRESS

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