Stronger protections for the financial well-being of associations faced with growing numbers of unit owner foreclosures is a top priority for Donna Berger, a condo law attorney and the executive director of the Community Advocacy Network, a lobbying group for associations.
She supports legislation that would require banks and lenders to foreclose on non-owner occupied units within 12 months from filing foreclosure or they will no longer enjoy a statutory cap on liability and will be responsible for all past due assessments. Currently, once lenders take title they are only liable to pay the lesser of six months past due assessments or 1 percent of the original mortgage debt for condominiums or the lesser of 12 months past due assessments or 1 percent of the original mortgage debt for HOAs.
They also have to start paying regular and special assessments from the moment they take title forward, which many observers believe is incentive for them to take their time on taking title.
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