In light of foreclosures, homeowner associations go after banks

TRD New York /
Jul.July 20, 2012 02:00 PM

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]


Related Articles

arrow_forward_ios
Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

The Daily Digest - Tuesday

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

Clockwise from top left: The Watchtower building at 25 Columbia Heights, Long Island University at 1 University Plaza, The Rheingold at 10 Montieth Street and 871 Bushwick Avenue in Brooklyn (Credit: Wikipedia and Google Maps)

These were the top 10 outer borough loans last month

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

Clockwise from top left: 54 Crown Street, 451 10th Avenue, 46-09 69th Street and 270 Park Avenue (Credit: Google Maps)

The top 10 biggest real estate projects coming to NYC

15 East 63rd Street and Oleg Cassini (Credit: Google Maps and Getty Images)

Oleg Cassini’s former UES headquarters faces foreclosure

arrow_forward_ios