Florida Condominium and/or Homeowner Associations Estoppel Mitigation and Litigation Services Group
Aldridge Pite has developed a unique specialty practice group in its Florida office pertaining to Florida Condominium and/or Homeowner Associations Estoppel mitigation and litigation. This group has proven wildly successful, saving the Firm's clients millions of dollars since its inception just a few short years ago.
Typically, when Borrowers stop paying their mortgages, they usually also stop paying their Condominium and/or Homeowner Association's ("COA" and "HOA") assessments resulting in sizable debts owed to the subject Association. Florida law provides that all subsequent owners are jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of the transfer of title. However, Florida law also carves out an exception to the general rule only available to a first mortgagee, its successor or assignee acquiring title to a unit by foreclosure or by a deed in lieu of foreclosure. This exception is commonly referred to as the Florida "Safe Harbor." As a result of the financial instability of these HOA's/COA's in Florida, few HOAs/COAs honor Safe Harbor in making Estoppel demands upon foreclosing Lenders and Servicers. As a result, Lenders and Servicers selling their foreclosed REO properties have millions of dollars each year hanging in the balance depending on their ability to recognize and require HOAs/COAs to honor their entitlement to the Florida Safe Harbor.
Aldridge Pite is the industry pioneer and leader in compelling compliance with Florida's Safe Harbor. It is with a sound understanding of Florida's statutes and case law that we confront, combat, and defeat both the most common and the most complex arguments made by HOAs/COAs in the courts around Florida. The Firm's aggressive and innovative programs and tested litigation strategies have saved our clients in excess of $20 million dollars since the program's inception. With an average turn time of fifteen days on non-litigated files, annual return on investment (ROI) of more than 875%, and a projected increase to a Client's bottom line of more than $5 million annually (based on approximately 350 annual referrals), Aldridge Pite has turned an otherwise uncontested corporate expense into a legitimate profit center by significantly increasing a Lender's/Servicer's realized proceeds (net of the reduced Estoppel demand which must be paid prior to sale of the REO asset) on every Florida REO sale.
Aldridge Pite welcomes the opportunity to meet with our clients at any time to dispel many of the common myths surrounding this specialized practice area and walk through the ROI which may be available based on a particular clients product mix and referral volume.