By: Daryl Tolliver
The foreclosure rate is still elevated throughout the country and several programs have been launched to provide financial assistance to struggling homeowners. Although mediation programs, monetary aid and federally-funded modification initiatives have been provided in several locations, there are still a large number of homeowners who are trying to get out from under their debt. However, the foreclosure crisis does not only impact homeowners, but also the banks themselves that are carrying the loans. And now, many homeowners in Florida are ensuring that financial institutions are held to the same foreclosure standards.
Hundreds of homeowners and condo associations are now foreclosing on banks that have skirted their obligation to pay dues and and additional property expenses they took on when they repossessed homes, according to CNN Money. Financial institutions are responsible for paying dues to homeowners associations, including any and all fees going back for a year-long period and future expenses. However, some banks in Florida have failed to abide by their end of the bargain, and now many of these groups are taking action by placing liens against the banks that own the homes.
According to attorney Ben Solomon, his firm has filed more than 1,100 liens against banks on behalf of homeowners and has brought 131 foreclosure cases, CNN Money reports. He noted that in 90 percent of cases, banks have agreed to settlements.
Impact of the foreclosures on homeowners
Financial institutions' failure to pay dues to homeowners associations has had a direct impact on homeowners as well that depend on the organizations. For example, homeowners are typically forced to make up the shortfalls the associations experience when banks fail to pay. This includes costs for maintenance, security, water and garbage collection. When homeowners lack these funds, they are forced to cut back on key benefits and necessary features, such as security and repairs.
Don Gonzales, who owns a townhouse in a condominium community, told CNN Money. Gonzales is currently filing a foreclosure suit against JPMorgan Chase to recover thousands in overdue funds the bank has not paid.
"We haven't had our blacktop resurfaced for years: It looks terrible," Gonzales told the news source. "We have palm trees where we used to have the coconuts taken off. It's a safety issue, but we can't do that now."
Although these poor banking strategies have drawn the ire of homeowners and associations, no federal legal action has been taken.