On August 13, 2010, the Federal Housing Finance Agency (FHFA) issued a proposed regulation to ban the use of deed-based or covenant-based transfer fees. The proposal would prohibit Fannie Mae, Freddie Mac and all federal home loan banks from purchasing mortgages for properties in communities with deed-based transfer fees. While…
As we reported in April, Assemblymember Julia Brownley had proposed AB 2502, which would have made assessment collection in California even more difficult than it already is. We have great news. Because of all of the opposition she received (your letters and emails were acknowledged) and because some of those…
By the Community Association Attorneys at SwedelsonGottlieb So the board has done its due diligence, investigated its options and decided that chasing down the owner who has not paid their assessments for many months is likely to be a waste of time, money and association resources. The board has considered…
When it comes to enforcing obligations secured by California real estate, California is a “single action” or “one-action” state. Civil Procedure Code Section 726(a) provides in part that “[t]here can be but one form of action for the recovery of any debt or the enforcement of any right secured by…
As we make our way through the “Great Recession”, we find that many owners are still upside down in their units/homes, owing more to their lender than the current potential sales price. In many cases, the owners cannot afford to pay the bank and are looking to get out from…
When property is sold through non-judicial foreclosure on an assessment lien, buyers (third parties or the association) take ownership subject to a 90-day right of redemption, which allows the foreclosed owner to recover the property if the owner pays the delinquency and any fees and costs (Civil Code §1367.4(c)(4); Code…
We are seeing many associations deferring common area maintenance and repair because they are afraid to increase their regular assessments or levy special assessments because they are concerned that the owners cannot pay any more money. In many cases, associations are experiencing 20% to 30% (or more) delinquencies. This is…
Recent reports indicate that about 4 million U.S. homeowners are 90 days or more delinquent on their loans or in foreclosure proceedings. Many experts are forecasting another wave of foreclosures. Follow these links for some interesting stories from the following sources: L.A. Times, Foreclosure Pulse, and MSN Money Central Adding…
David Swedelson was a speaker on a panel with this title at CAI’s recent 31st Annual CAI National Law Seminar in Tucson, Arizona. In preparation for that program, David Swedelson and firm Associate Stephanie Rohde authored an article entitled Collecting Delinquent Assessments in a Troubled Economy. Click here to download…
By Joan E. Lewis-Heard, Esq. Senior Associate; SwedelsonGottlieb For those community associations whose CC&Rs provide for assignment of rents from a tenant in the event an association owner who is renting their unit or home is delinquent in the payment of assessments, an association may collect the rent directly from…