In addition to homeowners, Home Owner’s Associations (“HOA”s) are victims of the foreclosure crisis as well. When homeowners stop paying maintenance fees or assessments, associations start facing serious problems. Some associations have more than 50% of their units delinquent. Under Florida law, HOAs can foreclose on owners for the delinquent fees and can take title that way. This is not always helpful because the existing mortgage goes with it and the lender (the bank holding the 1st and maybe even 2nd mortgage) may not be willing to relinquish its claim.
The Florida Supreme Court decided it would consider a settled foreclosure fraud claim as an issue of great public importance that may dramatically affect the mortgage foreclosure crisis in this state. The opinion states that the court has the right to look at the case claiming a fraudulent mortgage assignment was filed in court.
The case involves a Lake Worth resident who unsuccessfully sought an evidentiary hearing on possible punishment for the lender after the homeowner claimed the bank pursued foreclosure with a fake mortgage assignment.
National mortgage backers Freddie Mac and Fannie Mae announced this morning that they are suspending foreclosure evictions and lockouts from Dec. 19 through Jan. 2, 2012. The order involves foreclosed occupied single family homes and two to four unit properties that had Freddie Mac or Fannie Mae mortgages.
The government-sponsered enterprises also suspended evictions last year during the holiday season, but part of that included the foreclosure moratorium that most major lenders put in place after the robo-signing scandal left some foreclosures in doubt.