wildcard
27th April 2010, 01:41 AM
http://cbs4.com/local/condo.bill.association.2.1658068.html
Apr 27, 2010 12:13 am US/Eastern
Attorney Tells Foreclosing Bank To Act Or Get Out
A new tactic in dealing with foreclosed condo units is being used by one attorney in South Florida.
Ana Martinez is slowly watching her apartment building deteriorate with the housing crisis. Standing on her front porch she told CBS4's David Sutta, "We don't even feel safe living here anymore."
With just half the building's unit owners paying their association dues, Ana is left picking up the tab: $417 a month. Martinez said she's "frustrated, I am to the point of giving up."
The association has done just about everything, even foreclosing on units. Banks that own the mortgage on the apartment though take priority, and across South Florida banks are stalling to foreclosure.
Attorney Ben Solomon of the Association Law Group explained, "The bottom line is the banks don't want to assume the liability associated with the unit, including the obligation to pay maintenance assessments to the association."
Solomon is now challenging the banks to foreclose or get out of the way.
"The bank has to make a decision as to if they are going to take title to the financially upside down unit, or release their mortgage," said Solomon.
He calls it a mortgage terminator. He demanded Citibank to foreclose on unit 14 in Martinez's building. Surprisingly, instead of an 18 month legal fight, Citibank wrote off the debt, and handed the title over.
Jason Schoenholtz with Regatta Management took CBS4 inside the unit.
"Yeah it's completely abandoned. It look like somebody just ran out the door and left everything behind," Schoenholtz said, as he walked around the dilapidated apartment. The association now owns this two bedroom apartment. It needs work, but Schoenholtz believes they can sell it.
Schoenholtz said, "You're looking at 20-30,000 boon for the association, which they desperately need."
The association is smug with Citibank's willingness to walk away. One has to wonder if banks forced to foreclose will continue to do this, or was this a fluke?
"Is it a gimmick? Until somebody stops them from doing it. It's reality," said Schoenholtz.
Solomon believes this case will set a precedent for more cases.
"They can't sit on the sidelines anymore. And that's this legal strategy. It's to force them into making a decision," said Solomon.
Either way the association wins collecting dues or now title from the bank. Solomon says he plans to use this tactic on 12 more properties. It's an interesting concept. Forget foreclosure or refinance. Just ask the bank for the title. Who knows, maybe they'll give it to you.
Apr 27, 2010 12:13 am US/Eastern
Attorney Tells Foreclosing Bank To Act Or Get Out
A new tactic in dealing with foreclosed condo units is being used by one attorney in South Florida.
Ana Martinez is slowly watching her apartment building deteriorate with the housing crisis. Standing on her front porch she told CBS4's David Sutta, "We don't even feel safe living here anymore."
With just half the building's unit owners paying their association dues, Ana is left picking up the tab: $417 a month. Martinez said she's "frustrated, I am to the point of giving up."
The association has done just about everything, even foreclosing on units. Banks that own the mortgage on the apartment though take priority, and across South Florida banks are stalling to foreclosure.
Attorney Ben Solomon of the Association Law Group explained, "The bottom line is the banks don't want to assume the liability associated with the unit, including the obligation to pay maintenance assessments to the association."
Solomon is now challenging the banks to foreclose or get out of the way.
"The bank has to make a decision as to if they are going to take title to the financially upside down unit, or release their mortgage," said Solomon.
He calls it a mortgage terminator. He demanded Citibank to foreclose on unit 14 in Martinez's building. Surprisingly, instead of an 18 month legal fight, Citibank wrote off the debt, and handed the title over.
Jason Schoenholtz with Regatta Management took CBS4 inside the unit.
"Yeah it's completely abandoned. It look like somebody just ran out the door and left everything behind," Schoenholtz said, as he walked around the dilapidated apartment. The association now owns this two bedroom apartment. It needs work, but Schoenholtz believes they can sell it.
Schoenholtz said, "You're looking at 20-30,000 boon for the association, which they desperately need."
The association is smug with Citibank's willingness to walk away. One has to wonder if banks forced to foreclose will continue to do this, or was this a fluke?
"Is it a gimmick? Until somebody stops them from doing it. It's reality," said Schoenholtz.
Solomon believes this case will set a precedent for more cases.
"They can't sit on the sidelines anymore. And that's this legal strategy. It's to force them into making a decision," said Solomon.
Either way the association wins collecting dues or now title from the bank. Solomon says he plans to use this tactic on 12 more properties. It's an interesting concept. Forget foreclosure or refinance. Just ask the bank for the title. Who knows, maybe they'll give it to you.