| One of the biggest issues homeowners are dealing | | | | can be burdensome and an attorney should be |
| with in these tough economic times are lawsuits and | | | | consulted to protect the rights of the homeowner. If |
| threats of lawsuits by condominium and homeowner | | | | assessments are not paid the association can file a |
| associations. A West Palm Beach bankruptcy or | | | | claim of lien and foreclose or sue for any unpaid |
| foreclosure defense attorney can often assist clients in | | | | assessment without foreclosing. In this real estate |
| dealing with these issues to avoid potentially ruinous | | | | market few properties have any equity and a |
| outcomes. Often times, a homeowner in foreclosure | | | | foreclosure by an association often makes little sense |
| on their first mortgage or home equity line often view | | | | because there are no funds that can be obtained. |
| the payment of assessments as additional costs that | | | | Associations are now wise to this trend and often sue |
| cannot be justifiied if they know a short sale or | | | | both for foreclosure and back assessments as |
| immeninent foreclosue is possible especially if the | | | | damanges and elect to recover under the theory that |
| home is going to be ultimately surrendered in | | | | is most advantageous. If the homeowner receives a |
| bankruptcy. | | | | demand letter or is served with a complaint it is critical |
| Many associations themselves are on the brink of | | | | that they hire and attorney to defend the action or |
| bankruptcy due to defaults on assessment payments | | | | they will be liable and have a judgment if not settled. |
| or the foreclosure by lenders of first mortgages. Often | | | | The law regarding unpaid assessments for those filing |
| those that are current see little advantage to continued | | | | bankruptcy and surrendering the home is somewhat |
| payment of assessment s because they unfairly | | | | more complex. Homeowners considering filing |
| shoulder the assessment burden of other units | | | | bankruptcy should consult a West Palm Beach |
| depending on the governing documents or because | | | | Bankruptcy attorney to go over their options in detail |
| the level of services being provided have become so | | | | before acting. There are alot of nuances in this area |
| minimal that the communities are sinking fast in value. | | | | and emerging case law because assocations needing |
| The issues surrounding the payment of assessments | | | | funds have contested the discharge of unpaid arrears. |
| inside and outside of bankruptcy or part of a short sale | | | | It appears that the general rule now is that all unpaid |
| or loan modification can be complex but West Palm | | | | assessments that have come due prior to filing |
| Beach bankruptcy and foreclosure defense attorney | | | | bankruptcy can be discharged but any coming due |
| Donald Tiller has shed some insight on this issue | | | | after filing may have to be paid if the property has not |
| below... | | | | been sold to a new owner at a foreclosure sale. This |
| Lets first start with liability for assessments outside of | | | | however is often well worth it if all other debt is |
| bankruptcy. Typically associations are the most difficult | | | | discharged. If the foreclosure sale has already taken |
| to deal with because they are often unwilling to settle | | | | place prior to filing the bankruptcy typically all unpaid |
| for less than owed and once attorneys fees and | | | | assessments will be discharged and the homeowner |
| penalties are added on to the balance the amounts | | | | will have a fresh start. Consult a West Palm Beach |
| skyrocket. That being said, associations do settle in | | | | Bankruptcy attorney to discuss your debts in detail to |
| some cases and often offer reasonable repayment | | | | ensure you obtain the best debt relief options. |
| plans for owners that are represented by an attorney. | | | | If a loan modification is not able to be obtained or the |
| A West Palm Beach bankruptcy and foreclosure | | | | home is simply not afforadable because if a wage |
| defense attorney should be consulted and can often | | | | decrease or unemployment bankruptcy is often the |
| help homeowners devise a plan to best address these | | | | best method to acheive real debt relief. Mortgage |
| issues. | | | | foreclosures, unpaid real estate taxes, and unpaid |
| If your are seeking a loan modification or short sale the | | | | assessments are some of the leading factors leading |
| unpaid assessments must be paid or addressed as | | | | to bankruptcy. In this economy it is sometimes the best |
| part of the overall short sale contract. A loan | | | | resolution to a whole range of debt issues in order to |
| modification typically will not effect unpaid | | | | achieve a fresh start and remove debt before the |
| assessments but once a loan modification is obtained | | | | economy turns around. Otherwise, these debts will |
| the homeowner can use any additional funds remaining | | | | languish and end up causing substantial problems for |
| to work out a repayment plan depending on the status | | | | those seeking to recover for their futures. The seizing |
| of any action taken by the association. Associations | | | | of assets, wage garnishments, and other remedies |
| are in dire need for funds so it is almost always in their | | | | can cause serious problems if not addressed early. |
| interest to accept funds but the negotiation process | | | | |