Governor Signs New Foreclosure Rules Into Law For Homeowners Associations
The Governor recently signed House Bill 331 into law which will become effective October 1, 2013. The most significant change introduced by House Bill 331 is the introduction of a designated trustee into the HOA foreclosure process. In addition to numerous procedural provisions related to the foreclosure process itself, there are other changes enacted by House Bill 331 which affect HOAs. For instance, the law clarifies that the Claim of Lien secures all sums due before and after the date of the Claim of Lien, other fees and charges imposed by the association (for example, late fees, rental charges for common elements), unless otherwise stated in declaration, are enforceable under the Claim of Lien and the association is be entitled to recover the reasonable attorneys’ fees and costs it incurs in connection with the collection of any sums due, whether collection is through foreclosure of a lien or by suit for money judgment. To view the new law, click here. To view a summary of the new legislation click HOA legislative changes 2013.