Written on April 10th, 2009 by Elina V. Brim, Esq.
This past year, community associations have seen an increasing benefit of implementing foreclosure proceedings against delinquent owners. This article describes the foreclosure process and addresses changes in community association law relating to this process.
In 2004, the Georgia legislature amended the Georgia Property Owners’ Association Act (the “POA”) and the Georgia Condominium Act (the “Condo Act”) to permit judicial foreclosures of an association’s lien, subject to superior mortgages or other liens. As a result, associations governed by the Condo Act and POA are no longer required to pay off an owner’s existing mortgage or any other superior liens prior to foreclosure. However, any mortgage or lien that remains in place against the property after the association forecloses will need to be paid off to avoid a subsequent foreclosure by the holder of that mortgage or lien. The POA and the Condo Act were further amended in 2008 to require the amount of the statutory lien to be at least $2,000.00 prior to the initiation of a foreclosure case. This minimum amount can be comprised of assessments, interest, late charges, reasonable attorney’s fees actually incurred that became due within the last four years, and/or fines which were properly imposed as a result of a violation which occurred within the last two years.
Written on March 2nd, 2009 by Joseph C. Larkin Esq.
The National Bureau of Economic Research made the determination that the United States is in a recession - and has been since December of 2007. The current economic downturn has been caused, in part, by the nation’s housing downturn, which began in 2006. As a result, many Georgia community associations have noticed an increased number [...]
Written on July 14th, 2008 by Joseph C. Larkin Esq.
Community associations are entirely self-funded from the assessment payments of their members. When members (owners) do not pay, an association’s revenue is reduced, along with the association’s ability to satisfy its continuing obligations. Simply put, when owners become delinquent, such nonpayment directly affects the association’s ability to operate. As a natural result, the owners who are paying their assessments unwittingly subsidize the delinquent owners who are not paying. Worse, the delinquent owners continue to benefit from the association. Adding to the financial strain is that associations then redirect more of their ever-tightening budgets toward the costs of collection against the nonpaying owners. Recognizing these problems, the Georgia legislature has passed various laws that make it abundantly clear that community associations are entitled to recover their attorney’s fees and costs against the delinquent owners, the most recent of which became effective on July 1, 2008.
Written on May 9th, 2008 by Joseph C. Larkin Esq.
An old green sedan with chipped paint, no registration, a flat tire, and covered in a fine layer of dust and pollen. Can your condominium association legally tow it? The answer could very well be “yes,” even if your condominium does not have the specific authority to tow within its declaration of condominium. But what [...]
Written on May 9th, 2008 by John T. Lueder Esq.
A new owner has moved into your neighborhood. She worked with a real estate agent, had a closing at an attorney’s office, and everything went smoothly. But now there is a problem. The previous owner owed hundreds of dollars in unpaid assessments and charges that were not collected at the closing. You have recently informed [...]
Written on May 9th, 2008 by John T. Lueder Esq.
One of the most important ways for an owner to be involved in a community is to pay his or her assessments. Community associations cannot fulfill their obligations related to maintenance, repair, and operations without owners paying their assessments. Many associations have had enough of delinquent owners who continue not to pay and are increasingly [...]
Written on May 9th, 2008 by John T. Lueder Esq.
The Georgia Property Owners’ Association Act (“POA”) was adopted in 1994 to expand the powers of homeowners associations. The POA does not, however, apply automatically. Instead, the developer of a community or the members of a community’s homeowners association must “opt-in” to be governed by the POA. The “opt-in” process generally takes [...]
