Junior Lien Bill Heard in Senate Committee
On Monday, February 1st, the Colorado Senate Committee on Business, Labor and Technology heard testimony on Senate Bill 93 which we discussed in our January 25th posting on HOA Legi-Slate. In short, the bill would require an association - or an investor who was assigned the association's lien rights - to accept payment of the lien by the purchaser of the property following a public trustee foreclosure sale. Payment of the lien would act to extinguish the redemption rights on the lien.
- Do you think the ability of associations to assign lien rights is an important collections tool?
- Would you support the termination of redemption rights which would require associations to bid on the property at a foreclosure sale to protect the value of the association's lien?
Posted By Molly Foley-Healy In Current Year Legislation
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Senate Bill Addresses Junior Liens
On January 20th, Senate Bill 93 was introduced in the Colorado General Assembly by Senator Lundberg. This bill would require all junior lienors to accept tender of payment of the junior lien amount from the purchaser of the property at a public trustee foreclosure sale. In the association context, if a purchaser tenders payment to an association to satisfy the association's lien - that payment must be accepted, would extinguish the association's lien and eliminate the association's right to redeem the property or assign the lien.
- Submit with the notice of intent to redeem, a signed statement of the amount payable to the association on the association's lien;
- Accept payment of the lien amount which is tendered by the purchaser within 10 business days following the public trustee foreclosure sale;
- Execute a release of lien upon receiving tender of payment.
Posted By Molly Foley-Healy In Current Year Legislation
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Legislative Session Off to Quick Start on Issues Important to Associations
It has been less than one week since the Colorado General Assembly convened for the 2010 legislative session and at least four bills of interest to associations have already been introduced.
Posted By Molly Foley-Healy In Current Year Legislation
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2010 Colorado Legislative Tracking Report
2010 Colorado Legislative Tracking Report
Posted By HindmanSanchez In 2010 Colorado Legislative Tracking Report
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Ready, Get Set, Go!
The Colorado General Assembly convened today for the 2010 legislative session. To what extent associations will be the subject of legislation remains to be seen. However, we do know this much - bad press and complaints to legislators about associations drive legislation. Do you think associations will be front and center again this legislative session? Tell us what you think.
HindmanSanchez remains committed to providing you with up-to-date information on legislation affecting associations. Keep your eye on HOA Legi-Slate for updates and information as it becomes available.
Posted By Molly Foley-Healy In Current Year Legislation
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Units in Foreclosure Present Problems for Condominiums
What happens when utilities are turned off in the winter and the area experiences a freeze? Pipes burst of course. What happens when you own a unit in a condo and the unit above you is in foreclosure, the property has been abandoned, the utilities have been turned off and the area experiences a freeze? Pipes burst and the homeowners around and under the unit are forced to contend with flooding. 7 News reported on an elderly couple who were left to deal with the aftermath of such a water intrusion.
- Determine whether the association has any contact information for the owners who abandoned the unit and attempt to make contact with them to ensure the unit is winterized.
- Inform the attorney handling the lender's foreclosure when a unit has been abandoned and ask that immediate steps be taken to winterize the unit.
- Review the Declaration to determine if there is a provision which allows the association to enter the unit for inspection or emergency purposes. If so, seek legal guidance to determine whether the association has the authority to take remedial steps.
Posted By Molly Foley-Healy In Foreclosures
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New Year Resolutions for Boards
In addition to your personal new year resolutions - consider making resolutions for positive change in the communities you serve! Here are some ideas:
- Take Stock of 2009. As a board, sit down and discuss what went well and not so well during the past year. Talk about what your board can do to improve in governing the association and commit to making positive changes.
- Create Goals for 2010. Instead of flying by the seat of your pants, create goals for your board. Once your board has agreed upon goals for 2010 - identify benchmarks in reaching your goals, create timelines for benchmarks and identify who will be responsible for reaching them. Goals might include: building a sense of community; changing, adding or improving services to residents; facing tough financial challenges head-on and dealing with them.
- Dust Off Governing Documents and Use Them. Locate the most recent version of the governing documents for your association, put them in a binder (or a paper bag if necessary), take them to every board meeting, consult them and comply with them. As a director - it's your fiduciary duty to comply with your governing documents. Enough said.
Posted By Molly Foley-Healy In Community Associations Miscellaneous
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Governor Ritter Unveils Abandoned Homes Legislation at Pre-Christmas Press Conference
On Tuesday, December 22nd, Governor Ritter appeared at a press conference held at the Clements Community Center in Lakewood to unveil legislation that will permit lenders to expedite the public trustee foreclosure sales of abandoned properties. Representative Dianne Primavera, Representative Jeanne Labuda and Senator Michael Johnston will sponsor the legislation.
Posted By Molly Foley-Healy In Current Year Legislation
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4 Necessary Revisions to Your Collection Policy
Times are tough and collecting delinquent assessments has become even more difficult in many situations. As countless homeowners struggle to pay assessments, we are seeing more and more judges looking for ways to give owners “breaks” and looking at association policies with much greater scrutiny.
Over the past year we’ve recommended that these revisions be made to collection policies to better protect associations:
- Indicate owners are responsible for payment of tracking fees, processing fees or other fees charged to the association by management companies, if any;
- Make sure your interest and late fees do not equal more than 45% per annum as this is considered usury in Colorado;
- Provide that if an owner communicates via email, text, fax, phone or any other method, the owner authorizes the association and its agents to communicate via the same method in the future;
- Provide that owner consents to credit reports being pulled in the event the owner’s account is turned over for collection by the association to an attorney or agency.
If you’d like specific language for any of these additions or our assistance in modifying your collection policy, please contact one of our attorneys at 303-432-9999 or send us an email to hoalaw@hindmansanchez.com.
Posted By Loura K. Sanchez In Community Associations Miscellaneous
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Higher Costs, Tougher Standards In Store For 2010 FHA Mortgage Financing
Last week HUD Secretary Shaun Donovan announced applicants seeking FHA financing are going to face higher costs and tougher credit standards. What does that mean for home buyers? Changes being proposed include higher down payments – currently 3.5% but could go as high as 5%; seller concessions cut to 3%; mortgage insurance premiums as high as 3% and a minimum acceptable FICO score not much lower than 620 (which is the score currently used by both Fannie Mae and Freddie Mac.)
In addition, Wells Fargo also announced changes to its’ FHA Condo criteria which went in to affect on 12/8/09. One item to note is “no more than 50% of the units are occupied by units other than the primary residents.” Does your condo association currently have a process to track rentals? How will your association answer this question on the form? There are many other questions that my be difficult to answer or a "wrong" answer could result in a loan being denied? If you'd like to know more about the new FHA guidelines see our checklist.
Posted By HindmanSanchez In National News
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