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How banks are delaying the foreclosure process and payments to associations

by Mark Holan
Staff Writer – Tampa Bay Business Journal 

Condominium associations are facing a one-two punch from banks, says Aaron Gordon, corporate general counsel for LM Funding.

The Tampa-based financial services company provides capital to condo and associations by buying their delinquent assessments and keeping a portion of the collections.

While banks are doing better about litigating recent foreclosures, Gordon says banks are “notoriously dragging their feet” on foreclosures from when the housing bubble burst in 2007-2008.

Some of these cases are starting to bump against 5-year statutory limitations from when the foreclosure action was first filed, creating potentially more problems.

Gordon also says that when banks do become unit owners, many are slow about paying past and current condo association assessments, deepening deficits that make to impossible to maintain property and hold value.