Following the nationwide mortgage crisis, there is a lot of concern across the country about communities being faced with the prospect of foreclosure. Many states have enacted legislation relating to how to handle properties in arrears, what should happen to delinquent units and even to penalizing owners that have fallen behind in their payments.
Community associations suffering from the consequences of owners not paying their maintenance fees are now being faced with a new dilemma:
Deciding whether to foreclose on units with delinquent balances, or; Waiting patiently for financial institutions holding mortgages on delinquent units to foreclose.
The Question of Vengeance Foreclosures
Recently, some have questioned boards that take action to foreclose on these delinquent units, maintaining that they are acting out of vengeance. We ask, since when has a corporate board been criticized for properly exercising its fiduciary responsibility to its members?