Owners planning to sell can’t sidestep special assessment

My thanks to my readers who have written, called or have spoken to me in person extending their condolences over the loss of my friend, Ann Moore Webb. It's so hard to believe that she is no longer with us. Thank you for your kind words.

Q: We live in a gated golf community and pay a monthly association fee as well as individual fees to maintain our lawns. At a recent association meeting, we learned that out of 1,300 homes, several have gone into foreclosure with the owners gone and the banks owners of these homes. With the water turned off, the grass, trees and shrubs dead or dying, eyesores are occurring throughout the neighborhood.

The property manager said there is nothing that they can do. This leads me to guess that no fees are being collected from the bank owners either. As liens are being placed on homeowners for failure to pay their fees and maintain property, how do the banks and mortgage owned homes get away with this?

A: It is now time for the management companies, board of directors and homeowners to assert their positions with the banks -- they are owners and as owners they have a financial obligation to the homeowner association, as well as a maintenance responsibility to the homes that they now own, to be in compliance with the governing documents of the association.

The double standards that exist with the banks and lending institutions must end. First, the association and the board need to be proactive. If a bank is now an owner of the property and has not paid their assessments, the association should follow its normal collection procedures and commence foreclosure action against the bank. You know very well if you, as a homeowner, have not paid your mortgage that the bank will foreclose on you.

Second, violation letters need to be sent and the hearing /fine notices be initiated against the bank. Eventually when the bank sells the home, the association will receive a demand letter from the escrow or title company. At this time, the association should list the assessments owned, including late and legal fees as well as fines for violations. In cases where the violation has not been corrected, the bank will have to either correct the violation or give money to the buyer to correct the violation and close any sales transaction.

Third, letters need to be sent to the legislature asking for new laws to help associations enforce their governing documents with lending institutions. Here are some suggestions: When a bank or lending institution begins foreclosure action, the law should require an identification and contact information. Right now, many banks when they begin foreclosure action utilize a trustee and that is the name that you see on the foreclosure documents, and not the bank's name.

Also, within 30 days after the sale of the house, the lending institution or the bank must also submit the name of the new buyer, and the contact information for that buyer. Banks should be required to submit to the association all contact information for billing purposes. A double standard exists as to the bank/owner's responsibility in properly maintaining their home. If you as a homeowner have a mortgage on your home, look at your loan documents. You will probably find language which requires you to properly maintain your home and if you do not than you are in breach of your loan agreement. Yet, this is one of the main problems facing associations as banks do not wish to spend money to ensure that bank-homes are in compliance with the governing documents.

There should be significant penalties against the bank or lending institutions for failure to comply with these proposed laws. Call your Senator write to him or her. Tell him we need changes in the laws to ensure banks and lending institutions are good neighbors.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759 or she can be reached by email at support@hlrealty.com