Two recent appellate rulings have brought some much needed clarity to the criteria for lenders, their servicers and assignees to qualify for the “safe harbor” caps on their liability for unpaid association dues after the completion of their mortgage foreclosures.
In Brittany’s Place Condominium Association v. U.S. Bank, the Second District Court of Appeal settled some lingering questions as to whether a lender or servicer that takes title to a residence via a mortgage foreclosure must also be the current owner of the first mortgage when the final judgment of foreclosure is issued.
