Something new is coming within the bank-owned/foreclosure world.
According to an article in the Miami Herald on 3/7/10, a reverse foreclosure can force the banks to pay association maintenance fees when unit owners don't.
A reverse foreclosure happens when the association files its own foreclosure notice and takes title - this happens after the unit owner stops paying maintenance fees. The association cannot sell the unit because the bank is in first position. The association then goes back to court, renounces its claim on the property and asks the judge to give the title back to the bank. The bank then has to pay the fees.
Under existing laws and statutes, banks cannot be forced to pay more than 12 months of past-due homeowner association fees or 1 percent of the overall mortgage amount...whichever is less. For condominium's, the cap is 6 month's worth of fees.
