If a unit owner keeps refusing to pay fees, associations have the power to foreclose on the property -- even if the owner is paying the mortgage. The goal of a foreclosure is to recover the money owed by selling the property.
BANKS FIRST IN LINE
The trouble is, even if the association starts the foreclosure, the bank still gets paid first. If the owner owed more than the property is worth, the association could be out of luck. And under Florida law, the bank can't be forced to pay more than six months of fees or 1 percent of the mortgage amount, whichever is less -- until the bank takes title.
Even if unit owners can find a buyer, some banks are looking at the association's books and refusing to make the loans.
This could also block owners who try to refinance their loans.
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