The Federal Housing Finance Agency ("FHFA") recently extended its foreclosure moratorium on Fannie Mae and Freddie Mac loan servicers (which was set to expire on 06/30/2021) until 07/31/2021. What does this mean for community associations? Because mortgage foreclosures (or "Trustee's Sales" as they are known in Arizona) are an important indicator of future HOA delinquencies, the extended foreclosure moratorium is [...]
Some Arizona associations are currently facing the challenge of dealing with owners who are habitually behind on their assessment payments. Sometimes these owners don’t remit payment for several years, and, some owners withhold assessments for months until they are finally contacted by the association. Honestly, right now, Arizona HOAs/condos shouldn’t have a large number of owners not paying assessments. The [...]
Pursuant to A.R.S. Section 33-1256(B) / 33-1807(B), an HOA lien for assessments, late fees related to assessments and collection fees/attorney fees/costs incurred with respect to assessments has lien priority ahead of all other liens, interests and encumbrances on a lot/unit except: (1) liens and encumbrances recorded before the recordation of the declaration; (2) a recorded first mortgage/first deed of trust [...]
A recent Arizona Court of Appeals case helps answer this question for Associations in Arizona-- Laveen Meadows Homeowners Association v. Carlos Mejia, 1 CA-CV 18-0276 The Laveen Meadows Homeowners Association (“Association”) filed a foreclosure lawsuit against a homeowner for unpaid assessments and other amounts. The homeowner did not respond to the lawsuit so the Association applied for a default judgment. [...]
The economic impact of the COVID-19 Pandemic raises serious concerns for potential future increases in community association delinquencies. One important indicator related to a future increase in delinquencies is the mortgage foreclosure rates (or as they are known in Arizona, Trustee’s Sales). A mortgage foreclosure occurs when a borrower fails to remit mortgage payments and lender institutes proceedings to foreclose [...]
Our firm is starting to hear from some of our clients that their homeowners are struggling to make their HOA assessment payments each month because of the impact that COVID-19 has had on many families and their jobs in America. We want to make sure our clients are keeping an eye on the association’s financial status each month, to make [...]
A Proactive Approach to Collecting Delinquent Assessments For over 20 years, Mulcahy Law Firm, P.C. has successfully collected delinquent assessments from owners on behalf of the associations we represent. We are often asked what the "secret" to effectively assessment collection is. This cheat sheet shares our secrets. Please contact Beth Mulcahy, Esq., or anyone on the Mulcahy Law Firm, P.C. [...]
