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» Florida Adriana M Aleman, MBA Florida Dreams Realty Group aaleman@floridadreamsrealty.com Cell 321 689 6258 www.floridadreamsrealty.com MEMBER FROM THE BENCH Servicers Score a Win Against Homeowners' Associations In the Federal District Court, Middle District of Florida, HUD sued the homeowner's association (HOA) over disputed assessments. The case–United States v. Bridgewater Community Association, Inc., 2013 WL 3285399, (June 27, 2013)—followed a foreclosure of a 2005 mortgage by Wells Fargo where the bank took title to the property and conveyed to HUD. The dispute with the HOA prevented HUD from selling the property.  The HOA declaration filed in 2003 gave the first mortgage priority over HOA assessments. This type of provision is typical in Florida HOA and condominium declarations. The HOA claimed HUD owed all of the assessments that had accrued on the property along with costs and attorney's fees. The district court ruled otherwise.  The general rule in Florida is impairment of contract is not tolerated. The court held the HOA declaration gave Wells, the first mortgage holder, priority as a third-party beneficiary. The court stated that the Florida HOA statute enacted in 2007 would not affect the priority of the first mortgage holder.  What this means is that the attorney for the bank or servicer should review the declaration. If the language giving the first mortgage priority is present for a mortgage recorded prior to July 1, 2007, the date the HOA statute was enacted, the bank or servicer is not required to pay assessments or any other amounts to the HOA.  Of course, the HOA should be named in the foreclosure and all of this assumes that any HOA claim of lien does not predate the mortgage. Unfortunately, this case would have a very limited impact on condominiums because the condominium statue was enacted in 1976. The mortgage would need to predate that statute. This "From the Bench" article was contributed by Dan Consuegra, managing partner, and Andy Fivecoat, partner, at the Law Offices of Daniel C. Consuegra, P.L., in Tampa, Florida. IN THE NEWS Butler & Hosch Expands Footprint in Florida Multistate law firm Butler & Hosch, P.A., opened a new office in Tampa and is growing its Miami location. The expansion in Florida is in response to greater demand for the firm's legal services in the state, according to a company statement.  The expanded Miami office will replace the Orlando office as the firm's main Florida headquarters. Butler & Hosch currently employs more than 200 attorneys and professionals across offices in Tampa, Miami, and Orlando.  "By having a strong local presence in Miami, the firm can meet the clients desire to have firm attorneys and not outside counsel handle their legal matters," said Bob Hosch, senior partner at the firm.  "By opening an office in Tampa in the west coast of Florida, our clients can be better represented in another population center," Hosch continued. "Orlando will retain the staff necessary to handle foreclosure matters in the Central Florida region as well as continue a robust litigation practice."  Florida's Housing Market Continues to Improve Florida's housing market continued to heat up in July, with home sales and prices experiencing double-digit increases compared to last year, according to data released by Florida Realtors in late August. The number of existing single-family homes sold statewide in July rose to 21,238, up 20.9 percent from last year, Florida Realtors reported. Pending sales were also up, increasing 25.9 percent from last year to 24,675.  VISIT US ONLINE @ DSNEWS.COM The median sales price for single-family homes in Florida also improved. At $177,500, median home values were up 18.7 percent from a year ago in July.  Housing inventory in the Sunshine State, though, remained low compared to last year, dropping to a supply of five months in July, down 27.7 percent when supply was at 6.9 months. Median days on the market also fell, dropping to 48 days compared to 61 days in 2012.  According Dr. John Tuccillo, chief economist for Florida Realtors, the inventory crunch just might be easing.  "Specifically, new listings have been up, year-over-year, for all of 2013. This suggests that sellers are more eager to place their homes on the market," he explained. "In addition, the months' supply of inventory numbers have remained fairly static for the past three months, suggesting we may be reaching the bottom of the inventory decline."  EverBank to Provide $37M to Borrowers in Foreclosure Review Deal EverBank came to an agreement with federal regulators to provide $37 million in relief payments to certain borrowers, bringing the bank's Independent Foreclosure Review process to an end, the Office of the Comptroller of the Currency (OCC) announced in late August.  The recompense should cover 32,000 eligible mortgage customers whose homes were in any stage of foreclosure in 2009 and 2010, and checks should range from $1,050 to $125,000. Eligible borrowers will be contacted directly. The OCC did not specify when the payments would be sent, but the agency did say more information about payments will be announced in the "near future." The Jacksonville, Florida-based bank will also pay about $6.3 million to HUD-certified organizations or other groups dedicated to providing affordable housing and preventing foreclosure.   Additionally, EverBank is required to evaluate borrowers in foreclosure for a loan modification and create a special complaint process to resolve borrower complaints concerning credit report errors. The OCC and the Federal Reserve have already come to separate foreclosure review deals with 14 other banks, including Aurora 77

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