According to a recent article in the Wall Street Journal about delinquencies in condominium associations in Florida, “The time it takes lenders to foreclose has grown longer each year. Nationwide, residential properties are in foreclosure an average of 400 days, up from 151 days four years ago, according to foreclosure-data firm RealtyTrac Inc. What does that mean for your association?
- If an owner is delinquent your association is not likely to be made whole by the super lien which will only cover 6 months of assessments or 180 days!
- Associations should be quick to jump on delinquencies and take advantage of the time prior to a bank foreclosure by considering a tenant garnishment or a receiver if the unit is not owner occupied. Associations can also consider foreclosure by the association to get a new owner into the unit as quickly as possible rather than waiting over a year for the bank foreclosure. For more information on both receiverships and foreclosures read our articles, “Receivers, an alternative method to collecting delinquent assessments” and “Foreclosure as a collection tool.”