Before the 2008 real estate meltdown, condominium and homeowners association collection practices seemed to work all right, and write-offs would rarely be too painful to absorb. Since 2008, however, mortgage foreclosures have overwhelmed the court system—and uncontested cases take, on average, more than three years to conclude.
Due to a combination of Florida statutes and subordination language in an association’s governing documents, write-offs have resulted in associations increasing their monthly assessments, imposing special assessments, going into receivership or even filing for bankruptcy.
