In light of foreclosures, homeowner associations go after banks

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
Northwind Group’s Ran Eliasaf with 128 East 28th Street
Northwind files to foreclose on NoMad condo, rental properties
Northwind files to foreclose on NoMad condo, rental properties
From left: Ace Hotel’s Brad Wilson and Omnia Group's David Paz along with 225 Bowery (Getty, Google Maps, Ace hotel, Omnia Group)
Bowery micro-hotel files for bankruptcy
Bowery micro-hotel files for bankruptcy
Madison Realty Capital's Brian Shatz, P.S. 64
Auction set for long-vacant East Village school as owner vows to fight
Auction set for long-vacant East Village school as owner vows to fight
From left: Starwood Capital’s Barry Sternlicht and Veracity Development’s Edmond Li along with 111 Mercer Street (Getty, Google Maps, Veracity Development)
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
DW Partners David Warren and 427 Marcy Avenue (Getty, DW Partners, Google Maps)
Bizarre bankruptcy stops Brooklyn condo project foreclosure
Bizarre bankruptcy stops Brooklyn condo project foreclosure
Salim Assa with 15 West 55th Street
Troubled Midtown rental saga headed for a foreclosure finale
Troubled Midtown rental saga headed for a foreclosure finale
Brooklyn District Attorney Eric Gonzalez charges disbarred lawyer with deed theft of 10 Pleasant Place in Ocean Hill, 1429 East 100th Street in Canarsie and 1100 Sutter Avenue in East New York.
Disbarred lawyer charged in deed theft scheme — again
Disbarred lawyer charged in deed theft scheme — again
Leslie J. Garfield’s Thomas Wexler with 163 East 64th Street (163 East 64th Street, Getty, Leslie Garfield)
Renaissance-inspired townhouse faces foreclosure
Renaissance-inspired townhouse faces foreclosure
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...