HOA’s fight banks for payment of dues!

In an unusual David and Goliath story, JP Morgan is being sued by a Homeowners association for not paying the monthly HOA fees on a foreclosed property it took the title for some two years ago.  The associated fees amount to nearly 19,000 dollars.  It has become common for major banks who foreclose on properties to neglect to pay HOA’s the necessary fee’s until such time that the property is sold, if at all, but this Florida HOA isn’t taking the banks failure to pay sitting down, and is, in fact attempting to foreclose on the bank.

 “The association has both a statutory right under theFlorida laws as well as rights under its restrictive covenant in the community, and it pursues those rights just like any other owner,” says attorney Ben Solomon of Florida’s Association Law Center. “

While this case has its unique complications, others are more straightforward, involving bank-owned properties where title is not in question. In one case, Solomon says a Miami Beach condo association was successful in repossessing a home from a bank over back dues. The association then sold the home to pay the back dues.

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