FL HOA - Foreclosures and Dues

I am the President of a small community in South Florida with 65 homes. As such, we have 4 houses with leins against them and they are in foreclosure. The problem is they have been in foreclosure for over 1 year in 3 cases and 2 in 1 case. Due to special assessments and monthly assessments, we have approx 30k outstanding with these foreclosures and every month it builds. This 30k represents about 15% of our income per year for the entire community and is needed.

The problem is this. I was told in Florida that after foreclosure, we can only collect 1 years worth of back assessments. With the banks taking forever with the foreclosures and with the hold on foreclosures during the holiday season, we are not only losing our monthly assessments, but the banks are continuing to push the foreclosures 1 year past the special assessment and this action will save them thousands in our case. I wonder if they realize this savings?

Our Attorney has not been able to get anything moving on these foreclosures and it has been a waiting game. Has anyone thought about a class action lawsuit against banks and/or mortgage holders for this criminal activity? Its not our fault they handed out bad loans and their inability to propertly assess risk is now falling on HOAs. Sure we go through interview processes, but we don't have the ability to stop a purchase on these grounds.

Thoughts?

JRL, Boynton Beach - FL

Sandy,

Florida Statutes allow the association to suspend any use of amenities for lack of paying dues. Your governing documents will be required to state so. Check with your attorney.

James,
Then why, as you stated, are they still using the pool and other amenities?

James,
Sorry for the misread. Time to line up with Robert for new glasses.

If you are interested Nova Property Management has the ability to loan money to HOA's for budget shorts falls, maintenamce and repair issues. They also work with the banks on foreclosures and debt collections.

James the link I had to this story is no longer good but locally a neighborhood non-profit (not an HOA) in Cincinnati has sued the largest holder of foreclosed properties in their neighborhood for failing to maintain them. This was around July of 2008 but I don't know the status of the case.