Month: February 2012
Will the Obama administration's proposal to give homeowners with privately held mortgages a shot at record-low rates make an impact on community associations dealing with delinquent members and looming foreclosures? The plan could save those homeowners up to $3,000. And giving homeowners an opportunity to refinance their mortgages at lower interest rates—even if they owe more than their homes are worth—could make it easier for members to pay not only their mortgages, but also their association dues, taxes, and other fees.
Facts: A homebuyer purchased his home, situated in a community association, by a warranty deed that had no reference to the association's declaration. The homeowner failed to pay dues and assessments imposed by the association—one of the obligations in its declaration. Over time, the manager, on behalf of the association, sent multiple letters and invoices to the owner requesting payment of the dues and assessments, without results. Eventually, the association had its attorney send letters to the owner, attempting to collect the amounts owed.