Condo Foreclosure Bill Gets Favorable Report From General Assembly Committee
A bill that would require banks to reimburse condo associations for at least 12 months of maintenance fees in case of a foreclosure is gaining traction in the General Assembly.
House Bill 6477 was given a favorable report and sent to the House of Representatives in the General Assembly Wednesday.
That action was taken by the Joint Committee on Insurance and Real Estate.
A similar bill, H.B. No. 6662 is waiting action by the Judiciary Committee.
The CCOC supports both bills as vital to condo owners.
The bills were introduced after two judges ruled that banks only had to reimburse condo associations for up to six month of maintenance fees in case of foreclosure.
However, foreclosures now can take years to resolve in Connecticut. That means that other unit owners would have to make up for the lost revenue.
The impact on a small association could be devastating, perhaps forcing others into foreclosure.
However, the Connecticut Bankers Association says such legislation might make it more difficult for consumers to obtain mortgages for condos.
The association says it wants to find a “workable solution” to the problem.
Banks should not get away with just 12 months of Assoc. maintenane. It should be indefinate, after all
they issued the mortgage and should own up to their responsibility. They have more money than condo assoc. The banks would not have any incentive to sell the forclosed ppty until the realestate market improves to their satisfaction. The onus should be on the banks at all times, this is not the fault of the condo assoc. Therefrore, DO NOT let the banks get away with this. The Legislature represents the public
not the banks or their lobbyists. We vote for these representatives.
While Banks are making Large profits. Many more Condo owners are loosing their homes, because they have to make up the loss of monthly maintenance of the condos in foreclosure. Therefore it makes perfect sense that the banks pay the maintenance while the condo is in foreclosure.
Thank you, Mr Stammelman for bringing up this important issue
We have a couple of people in one unit, that can’t afford to live there and pay there bills and then the bank, how do they go about this?
Without losing every thing?
Where do they start??
Please reply at my email.
Thank you.
Kathy
there is currently a bill in the federal level number 1354 that is presented by Senator Blummenthal on the foreclosure act of 2015. I am facing an $8,000.00 special assessment fee from the board. I am in a fixed income and just can not afford this fee. I have been told that if I do not pay, the board will foreclose. I am not the only one in this complex. Some of the others are much older than me. Can you see all of us out on the streets? I found this bill and I have given this to congressman Courtney.and he passed it on to Blummenthal. I am keeping my fingers crossed. I am hoping that this passed. I think that this might help others.