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An
Opinion By Jan Bergemann Published March 31, 2012 Nearly all Florida community associations are fighting to solve serious financial problems, caused by unpaid dues and/or foreclosures. There are many interpretations of the existing laws in the Florida community association statutes [FS718.116 + FS 720.3085] -- and many philosophies on how to deal with these problems. Some of the big association law firms like Becker & Poliakoff (CALL) and Katzman Garfinkel & Berger (CAN) are claiming that these statutes limit associations to collecting only the lesser of 12 months of unpaid assessments or 1% of the original mortgage from banks after foreclosures. These law firms and their lobbying arms were even willing to push for a bill that would have strengthened the so-called SAFE HARBOR provisions that protect banks against higher liabilities. Homeowners and condo owners had a hard time understanding why these law firms that claim to lobby FOR associations could strongly support House Bill 319, dubbed the BANKERS' BAIL OUT BILL. Some collection firms have a different philosophy (meaning interpretation) of these laws and feel that the associations are entitled to a lot more than just the lesser of 12 months of unpaid assessments or 1% of the original mortgage. Last week's edition of the radio show CONDO CRAZE & HOA'S [http://www.ccfj.net/CONDOCRAZEmain.htm] featured Mitch Drimmer and Association Financial Services, one of the collection firms representing this idea, trying to get more out of banks than just the minimum the law requires. Just LISTEN TO THE SHOW and you will hear the explanations about the system these collection firms are using. And as usual: Beware -- not one system fits every situation. All associations and their needs are different. Take a look and see if this system might help your community. There are many different ways and philosophies when it comes to collecting unpaid dues. Board members should take a look at the different options and pick the one most appropriate for the needs of their association. I listened last Tuesday at PM-EXPO IN PUNTA GORDA to the presentation of Mitch Drimmer. I surely liked some of his arguments -- and in time of need any extra penny collected is welcome. Below is an interesting chart, part of the presentation I listened to. It shows the difference of pay-out when using the philosophy of collection firms -- meaning their interpretation of the existing law.
For more information please go to their website: http://www.associationfinancialservices.com/
And next year please don't listen to CAN and CALL -- listen to your wallet when the BANKERS' BAIL OUT BILL will be up for debate in the Florida legislature again. Never forget the words of House Representative Richard Steinberg spoken during the DEBATE OF THE HOUSE JUDICIARY COMMITTEE: "If legal fees aren't paid by the bank, wouldn't the end result be that the legal fees have to be borne by the association and those who are paying the fees, those that are not in foreclosure, but those that are being good citizens within the association?" |
