The Real Deal Miami

Bank backed to wall in condo foreclosure

July 22, 2008 12:20PM

The Bentley Bay condo complex in Miami Beach is pushing lenders that foreclose on units there to pay maintenance fees or take title to properties in accordance with laws that say a lender foreclosing on a condo unit is responsible for six months in past-due maintenance fees or 1 percent of the mortgage. Lenders must pay maintenance fees for as long as they own a unit.  When a Bentley unit was in foreclosure, the cash-strapped condo association finally asked Miami-Dade Circuit Judge Daryl Trawick, who was overseeing the foreclosure case, to resolve the problem. He presented U.S. Bank, the trustee for Citigroup Mortgage Loan, with two options: don’t foreclose and start paying maintenance fees on a unit it doesn’t actually own, or foreclose and pay thousands of dollars in past-due fees.