”Reverse foreclosure” is a term that has been coined to describe when an association owns a unit as a result of its own foreclosure action for unpaid assessments and forces the title to the property upon a lender who has stalled its foreclosure action against the property. In a recent Miami-Dade court case, a foreclosing lender failed to diligently prosecute its own foreclosure action, and the association was able to demonstrate in court that the lender was in violation of the law against actions that unreasonably restrain the transfer of real property. Banks are delaying their foreclosure actions because once they take title to a residence, they owe the association the lesser of six months back assessments for condominiums and one year for homeowner's associations or one percent of the initial mortgage plus all assessments due on the unit from the day the lender takes title.

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Condominium Association Bills Before Florida Legislature to Provide Some Relief
By Howard J. Perl

The law firm is currently monitoring the status of the more than 50 bills affecting condominium and homeowner associations that have been filed during the current legislative session in Tallahassee. We believe that some of the most common elements of these bills will ultimately make their way through the legislature in some form or another to become law, and most of the changes will be welcomed by the thousands of community associations in the state that are struggling with the challenges of the current housing market.

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Condominium Associations Find Right Balance for Rental Restrictions in Today's Market
By Roberto C. Blanch

The leasing of homes or units in a community association has been among the most contentious issues for HOAs and condominium associations as well as their individual unit owners during recent years. The glut of unoccupied and unsold residences in the South Florida market has created an oversupply of rental properties, and the board members of some newer condominium buildings are being criticized for implementing lax policies for the rental of unsold units by developers. In addition, disputes involving rentals by individual unit owners are ending up in court in significant numbers.

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Positive Changes for “Flippers” and Their Buyers

The “flippers,” residential real estate investors who buy a residence in hopes of selling it for a profit within a short timeframe, have received their share of the blame for the overbuilding that led to the collapse of the housing and condominium markets in South Florida. The Fair Housing Administration (FHA) is the largest government insurer of mortgages in the world, and it discourages “flipping” by requiring sellers to own a property for at least 90 days in order for a buyer to qualify for an FHA backed loan. However, in light of the current state of the housing market and the need for FHA-backed mortgages to fuel its recovery, the rule against flipping has been suspended until Feb. 1, 2011.

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Disastrous Court Ruling for Homeowner Association

A recent Florida appellate court decision may severely impact the ability of community associations to collect delinquent monthly assessments and related fees when a foreclosing lender takes title to a property. Based upon language that is contained in many community association governing documents, particularly those used by HOAs, the court concluded that a lender obtaining title to a home resulting from its foreclosure action was not obligated to pay any assessments owed to the association by the previous owner, despite Florida law requiring that foreclosing lenders pay HOAs the lesser of 12 months assessments or one percent of the original loan amount.

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Jeffrey S. Berlowitz Joins Law Firm to Focus on Bankruptcy Matters

Siegfried Rivera Lerner De La Torre and Sobel P.A. is pleased to announce that Jeffrey S. Berlowitz has joined the firm in an Of Counsel capacity. Mr. Berlowitz, practicing in South Florida since 1992, focuses his practice in the areas of bankruptcy, creditor's rights, workouts, and complex commercial litigation. He has represented creditors in jurisdictions throughout the country, in every type of bankruptcy case, including proceedings under Chapters 7, 11 and 13. His expertise will benefit the firm's clients, including the numerous community associations that we represent.

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Visit Us and Learn From Our Attorneys at CAI Gold Coast Chapter Annual Trade Show

The law firm is proud to once again play a prominent role at the Annual Community Association Days Trade Show presented by the Gold Coast Chapter of the Community Associations Institute. The firm's attorneys and paralegals will be available at our exhibit at the event, which is taking place from 9 a.m. to 4 p.m. on Friday, May 7, 2010, at the Palm Beach Convention Center, to answer questions from the managers, board members and homeowners who attend. In addition, one of our attorneys will serve on the panel during the attorney Q&A session, which is complimentary to attend for all board members and homeowners.

To receive additional information or register for this event, contact the CAI Gold Coast Chapter at
(561) 350-5890.

Firm to Lead Course on Foreclosure Issues at CAI Southeast Florida Chapter Breakfast

The law firm's Jeff Rembaum will lead a course entitled “To Foreclose or Not to Foreclose? That is the Question” for the attendees of the Southeast Florida Chapter of the Community Associations Institute's (CAI) breakfast on Tuesday, May 25, at the Jacaranda Country Club in Plantation. The course, which is certified for one-hour of CEU credit for property managers, will cover some of the most important issues and questions pertaining to foreclosures and lenders that are affecting condominium associations and HOAs throughout South Florida. For more information contact Jill Proietti at (954) 816-0661, and to register for the course visit www.cai-seflorida.org .