HOA Legi-Slate

During the past year, we have been keeping you in the loop on passage of House Bill 1157 which cleaned-up the comprehensive foreclosure reform legislation that was signed into law in 2006.  On January 1, 2008, the provisions of HB 1157 that apply to foreclosures in community associations will go into effect.  Based upon these provisions, associations should be aware of the following:

• There is an increased timeframe in which a homeowner may "cure" assessment delinquencies.  The "cure period" - the time between the commencement of the foreclosure action and the initial sale date - was increased from 45-60 days to 110-125 days.
• The right to redeem by homeowners after the sale of the property is eliminated.
• Associations should make sure that all recorded liens reflect an address to receive notice of a foreclosure and if relying on a statutory lien - that the current address for notice be reflected in a recorded document.  Otherwise, associations may not receive notice of foreclosures.