It’s not just homeowners who have been hit hard in the foreclosure crisis; it’s also homeowner associations, which collect monthly payments for community amenities. CNBC reported that these associations are now going after big banks, alleging that several of them have not paid monthly dues on the homes that they have repossessed. There are currently dozens of lawsuits seeking to claim these back dues.
One example is Homestead Florida’s Keys Gate Community Association, which alleges that JPMorgan owes more than $19,000 for two years of back payments on a foreclosed home.
“The association has both a statutory right under the Florida laws as well as rights under its restrictive covenant in the community, and it pursues those rights just like any other owner,” attorney Ben Solomon of Florida’s Association Law Center, told CNBC. “In this legal scenario, JPMorgan is no different than any other homeowner in the community who has failed to pay.”
A JPMorgan spokesperson told CNBC that they have lost homes to homeowner associations due to delinquent payments. But in the Keys Gate Community Association case, the bank serviced the mortgage and the home’s ownership was temporarily in question. CNBC reported that the bank sold the home to an investor last month. [CNBC]