Skipped bill payments puts homes at risk

OUR OPINION: LAWMAKERS SHOULD

SET RULES TO PROTECT CONSUMERS


 

OPINION Courtesy of The Miami Herald
Published January 16, 2005

This one goes under the heading: ''There Ought To Be a Law.'' Unfortunately, there isn't a law that protects homeowners from condominium and homeowner associations that foreclose on homes because of minor debts. It happened to Robert and Theresa Denson, who lost their Boynton Beach home two years ago after their homeowners association foreclosed on a $1,200 debt.

Unfair loss

The Densons aren't alone. Many Floridians think that the state's homestead-exemption law protects them from losing their home to a creditor. And they're right, up to a point. The homestead-exemption provision of Florida's Constitution does protect homeowners from the forced sale of their primary residence because of debt. But condo and homeowners' associations are specifically excluded from the exemption. So the Densons' loss of a home now valued at $375,000 because they failed to pay $1,200 in association dues was perfectly legal.

It may be legal, but that doesn't make it right. (See an account of the Densons plight in last Sunday's Home section of The Herald, or search for Densons to read the story online at www. miami.com.)

When the Legislature convenes this year, lawmakers should review the foreclosure practices of overly aggressive condo and homeowners associations. Legislators should look to adjust the contractual agreements so that both condo associations and homeowners are protected. Associations and their members are entitled to be paid for dues, maintenance, repairs and other services. However, delinquent homeowners can be persuaded in other ways short of foreclosure to make good on their debt. Associations could collect fees in advance, use escrow accounts, try court action or other means to guarantee payment. Seizure of a person's home should be a last resort.

As it stands, power is skewed in favor of the associations. Some homeowners aren't aware of a problem until they are faced with a delinquent notice, with costly legal fees added on. In Weston, the homeowners association filed 231 liens against property owners last year, almost all of the liens for failure to pay cable-TV bills. The homeowners were required to take the cable-TV service when they purchased their homes, even if they didn't want it.

No delinquent notices

In some instances, the association started foreclosure proceedings against residents who failed to keep their cable bills current. But many residents complained that they never received the delinquent notices. The city didn't bother to send its warnings via registered mail, which would have at least confirmed that the bill were received.

State lawmakers should consider rules that establish minimum requirements and uniform procedures for resolving these disputes. No one should lose his or her home for failing to pay for lawn-maintenance or a cable bill.


FORECLOSURE
Small debt can spiral into loss of home

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