Condon Occupants Are Unwilling To Surrender To Foreclosures without Giving A Fight
December 19th, 2008
Of late it has come to the focus that tenants are unduly paying the price for foreclosures for no fault of theirs. But some condo occupants are unwilling to surrender to foreclosures without giving a fight.
The story of Ann Mitchell is one of the many. A retiree, she has been living happily but modestly in her condo complex near the sea from 1984. The view was fantastic and its nearness to quaint Riviera Village made it all the more appealing to Ann. She held a 30 year mortgage and had built up a comfortable equity in her two bed roomed condominium. A bonus point was her excellent credit rating. She did not have any cause to worry. But today at the age of 66 she is afraid of everything – her house and all that she has toiled for.
This situation has arisen because the house owner’s association at Village Palos Verdes has imposed an assessment on her and other 180 residents like to her to fund a project for renovation of the exterior. The project is worth $13.5 million. Ann has been charged $75,000. Ann is in no condition to be able to pay. The Wall Street meltdown has swallowed up half of her retirement money. As she does not make enough money and her income is fixed she is excluded from any refinancing package.
On top of that she cannot afford the financing package being offered by the condominium complex authorities. On various heads including due payment, monthly fee, maintenance fee and a ballooning payment that approximately counts to $125,000. Considering the ghastly mood of the market, the recession and the credit squeeze Ann is terrified.
The house owner’s association rules state that after 30 days of delinquency the entire amount has to be paid immediately. If not the property could be placed under a line and a foreclosure sale imposed.
Like Mitchell many others in the complex are in the same boat. This made 20 of them to form a group in November and file a legal suit against the house owner’s association. In the suit reservations have been taken about the manner in which the assessment has been levied. By doing so the association is alleged to have violated its own laws. The exterior work is not scheduled to commence before January 2009. It has also been said that the assessment charged is far above the actual cost of repairs.
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