Tomorrow is the day the new Florida Law goes into effect allowing Homeowners Associations to go after tenants for past due fees owed by the deadbeat owners they are renting from. Owners often owe delinquent fees to their association on properties that are in foreclosure. These owners however continue to rent the properties and most of them keep the rents although they are not paying their fees or their mortgage.
This law is aimed at helping associations recover fees that they are losing out on. Many associations throughout Florida are in desperate financial trouble due to the large amount of foreclosures and the subsequent loss of revenue from fees owed on those properties. Currently banks are only required to pay a maximum of six months of fees. The foreclosure process can take years leaving the association left in a deep hole.
Under the current law associations are allowed to petition a Judge to appoint a receiver to collect rents from the tenantswho occupy properties that are delinquent on their fees. This process can be costly in both time and legal fees. The new law is supposed to alleviate a large part of these costs. Only time will tell if this will work.
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