Ten years ago during the height of the housing crisis, community associations were having a great deal of difficulty contending with the deluge of foreclosure cases they were facing. Many foreclosures would take years to prosecute, and mortgage servicers and lenders that had purchased loans from their original lenders in the secondary market were having difficulties procuring all the pertinent documents.

Today, foreclosures are taking considerably less time, but some cases can still prove to be extremely problematic. For those cases that begin to take on epic proportions and a great deal of time to prosecute, associations must always be mindful of the fact that they could be held liable for the attorney fees and costs of unit owners who prevail in foreclosure actions for past-due assessments. In fact, as a recent appellate ruling illustrates, associations can become liable for such legal fees even if owners sell their unit during the pendency of the foreclosure litigation.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]