Condo Foreclosure Bill Gets Favorable Report From General Assembly Committee
A bill that would require banks to reimburse condo associations for at least 12 months of maintenance fees in case of a foreclosure is gaining traction in the General Assembly.
House Bill 6477 was given a favorable report and sent to the House of Representatives in the General Assembly Wednesday.
That action was taken by the Joint Committee on Insurance and Real Estate.
A similar bill, H.B. No. 6662 is waiting action by the Judiciary Committee.
The CCOC supports both bills as vital to condo owners.
The bills were introduced after two judges ruled that banks only had to reimburse condo associations for up to six month of maintenance fees in case of foreclosure.
However, foreclosures now can take years to resolve in Connecticut. That means that other unit owners would have to make up for the lost revenue.
The impact on a small association could be devastating, perhaps forcing others into foreclosure.
However, the Connecticut Bankers Association says such legislation might make it more difficult for consumers to obtain mortgages for condos.
The association says it wants to find a “workable solution” to the problem.