Miami Judge Orders $9K+ In Sanctions On Lender For Purposely Delaying Foreclosure Sale On Condo

In Miami, Florida, the South Florida Sun Sentinel reports:

• Can Florida banks be held financially accountable for purposely delaying condo bank foreclosure sales? A new South Florida circuit court ruling says yes. Amid a growing clamor for Florida banks to bear more of the financial burden caused by widespread condo foreclosures, the Miami-Dade Circuit Court case settled last week shows an example of associations turning more often to courts for relief from revenue losses tied to the state's condo crisis. And it could pave the way for other South Florida condo associations faced with stalled foreclosures caused by lenders.

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• Miami-Dade Circuit Court Judge William Thomas sanctioned Deutch [sic] Bank for not sending a representative to a foreclosure sale as required by an earlier court judgment, a move that automatically cancels a sale date, and for not publishing a public notice in a local newspaper in time for another foreclosure sale date, again causing the sale cancellation.

• Although Deutch [sic] did not offer explanations in court for the delays, its attorney argued that Florida courts are not allowed to force banks to pay condo association fees. Another recent ruling by the 3rd District Court of Appeals(1) in Florida held that a bank could not be ordered to pay monthly maintenance fees before obtaining title to a unit. Thomas' ruling, however, sanctioned Deutch for improper conduct related to the foreclosure case. The bank was ordered to pay about $7,300 in sanctions to the association and $2,000 to cover its legal fees.

For more, see Miami-Dade ruling shows banks may be fined for delays in condo foreclosure sales.

(1) U.S. Bank Nat'l Ass'n ex rel. Harborview 2005-10 Trust Fund v. Tadmore, 23 So. 3d 822; 2009 Fla. App. LEXIS 18408 (Fla. Ct. App. 3rd DCA, 2009).