HOAs Step Up Fight to Collect from Foreclosures

Homeowner associations in Florida communities hard hit by foreclosures are using a variety of tools to maintain property values.

In one of the most effective strategies, they are attempting what is known as reverse foreclosures. This technique asks the court to assign title to the lender, making the bank the legal owner, responsible for paying association fees. It hastens the foreclosure proceedings and encourages lenders to maintain properties.

At the Verano at Delray Beach Condominium Association, these techniques have boosted collectibles by 20 percent. At the Venetia Condominium Association in Miami, the board was able to foreclose on 140 units and force owners to pay past-due fees, reducing $3 million in debt to about $900,000.

Source: South Florida Sun-Sentinel (08/11/2010)