Thursday evening, August 20, 2009 Public TV and Radio station WXEL conducted a Foreclosure Crisis Symposium from 7 to 9 PM at the South County Civic Center, Delray Beach, in coordination with the South County Partnership: Alliance of Delray Residential Associations; Coalition of Boynton West Residential Associations and West Boca Community Council.

Steve Pomeranz, who conducts the radio program “On the Money” on WXEL 90.7FM was the moderator. Participants were State Senator Ted Deutch, District 30; Attorney Louis Caplan, Partner at Sachs, Sax and Caplan Law Firm and Colleen A. Donahue, Interim Condominium Ombudsman.

(Shown in photo: Sen. Ted Deutch, Bob Schulbaum, Pres. of Alliance of Delray; Sheri Scarborough, Pres. West Boca Community Council; Louis Caplan; Steve Pomeranz.)

Senator Deutch presented sobering figures pertaining to foreclosures in Florida. There have been 271,300 foreclosures in the state since January 2009. In July there were 57,000 foreclosures. Palm Beach County had 2,652 foreclosures in the month of July. The major point made was when a foreclosure occurs, the remaining residents in a condo association or HOA pick up the costs of maintaining the foreclosed property. This forces boards of directors to levy special assessments. When that happens additional residents may be forced into foreclosure because they cannot afford to pay the assessment.

Sen. Deutch stated the banks were taking from 18 to 24 months to take possession of a foreclosed property. They stall this process because they do not want to be responsible for the monthly maintenance outlay they must make to the association once they take over the property.

One member of the audience suggested with the power of the numbers of residents we have in the area we should use that as leverage with the banks to force them to assume responsibility for the foreclosed property more quickly. If they do not comply then we should take our accounts to other banks that will be more cooperative.

Sen. Deutch will suggest to the legislature that a special session be held where banks and consumers sit down with legislators and come to some solution to these serious foreclosure problems.

Attorney Lou Caplan spoke at length stating the banks have more money to lend now than they had a year ago. With the foreclosure situation so dire, many community boards are putting off improvements to save money. This has impacted many supplier companies such as landscaper’s, tree trimmers, paint contractors, etc. forcing some to go out of business.

It is important, stated Caplan that boards go after non-payers of special assessments, and/or monthly dues. He described the legal process involved. For condo associations a letter to put a lien on a property can be sent after thirty days of non-payment. After another 30 days of non-payment a letter of foreclosure can be sent. With HOA’s the procedure is extended to 45 days instead of 30.

He suggested some options to avoid foreclosure a board can offer a resident: Consider an extended payment plan. Or stop resident from using the community facilities.
It is important for boards to consult their legal counsel for the proper procedures to use.

The Ombudsman representative, Colleen A. Donahue stressed that all legal means be used by boards so abuses to residents do not occur.

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