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.

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